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Author: 


Suffern  &  son 


Title: 


Railroad  operating  costs 
2V. 

Place: 

New  York 

Date: 

1911-1912 


MASTER    NEGATIVE   # 


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^ '  Railroad  operating  costs ;  a  series  of  original  studies 
in  operating  costs  of  the  leading  American  railroads,  by 
Suffern  &  son  ...     New  York,  Suffern  &  son,  1911- 

vl   y    diagrs.  (part  fold.)     28"".    Z  V, 

Vol.  2  has  title :  Railroad  operatins:  costs,  arratiRed  to  include  the  opera- 
tions of  1911;  a  continuation  of  studies  in  operating  costs  of  the  leading 
American  railroads. 


1.  Rpilroads — Cost   of   operation.     2.  Railroads— tfr-fe— Finance 
1.  Title.  ~ 

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LIBRARY 


School  of  Business 


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Railroad  Operating  Costs 


A  series  of  Original  Studies  in  Operating  Costs  of  the 

Leading  American  Railroads 


BY 


SUFFERN  &  SON 

Analysts  and  Organizers  for  Business  Effectiveness 


Price,  $2,00 


NEW   YORK 

SUFFERN  &  SON 
1911 


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'HERE  are  in  the  United  States  250,000  miles  of  railroads  operated  by  companies  having  a 
total  capitalization  of  eighteen  billions  of  dollars  ($18,000,000,000.)  Considered  as  a  unit, 
this  is  the  greatest  property  and  aggregate  investment  of  money  in  the  world  devoted  to  one 

commercial  pursuit. 

Total  earnings  from  operation  exceed  $2,500,000,000  annually,  from  which,  $230,000,000  is  set  aside 
in  dividends  to  the  stock  holder;  $400,000,000  in  interest  on  debts  involved;  $95,000,000  in  taxes;  and 
$1,600,000,000  for  operating  and  maintaining  the  property. 

Revenues  are  dependent  upon  financial  conditions  and  material  prosperity  of  the  country.  Unlike 
other  industrial  concerns,  railroads  cannot  create  business  to  any  degree  by  the  methods  which  the  former 
employ  so  successfully.  One  road  may  take  business  from  another,  but  the  total  remains  the  same— the 
traffic  offered  for  movement,  which  in  turn  is  a  product  of  industrial  conditions. 

The  markets,  money  conditions,  supply  and  demand,  are  the  governing  factors  in  railroad  revenue. 
Railroad  management  has  nothing  to  do  with  it.  But  back  of  their  duty  to  the  public,  railroads  exist  for 
profit.  The  problem  of  railroad  operation  then  becomes  one  of  creating  profit  by  balancing  expenditures 
to  a  rigid  and  inflexible  income. 

Expenditure  can,  of  course,  be  nicely  proportioned  to  the  revenue,  but  never  at  a  sacrifice  to  the 
service.  The  public  demands,  and  rightfully,  that  railroads  fulfill  their  obligations  as  public  service  cor- 
porations by  giving  adequate  service — with  perhaps  little  regard  for  the  cost  involved. 

The  way  to  profit  from  railroad  operation  is  then  clearly  defined.  Between  the  barriers  of  a  fixed 
income  on  one  hand  and  standard  of  service  on  the  other,  the  solution  for  adequate  returns  from  railroad 
investments  lies  in  (a)  equable  adjustment  of  rates;   and  (b)  economy  of  operation. 

Never  in  the  history  of  railroads  has  the  question  of  operating  costs  received  so  nmch  attention 
from  railroad  officers  as  at  present.  The  greatest  interest  is  everywhere  manifest  in  costs  of  operation  and 
local  conditions  on  parallel  and  competing  railroads  for  the  purpose  of  improving  performance  and  costs 
through  the  medium  of  judicious   comparisons. 

This  widespread  demand  for  information  on  operating  costs  has  awakened  the  Interstate  Connnerce 
Commission  to  a  greater  realization  of  its  duty  to  the  railroads  in  furnishing  them  with  more  essential  data 
on  railroad  operation.  The  Commission  is  now  making  preparations  which  will  in  time  turn  their  yearly 
report  from  a  bulky  volume  of  tables  and  summaries  into  a  hand-book  of  operating  costs  to  which  the  rail- 
road officer  will  naturally  turn  for  the  inevitable  comparison  when  analyzing  his  own  operating  costs. 

It  is  the  purpose  of  this  book  to  present  studies  in  railroad  operation  which  will  throw  the  light  of  a 
true  perspective  on  operating  costs,  through  comparisons  of  vital  factors  in  the  management  of  leading 
railroads.  Never  before  has  such  a  forceful  analysis  of  operating  costs  been  arranged  for  public  distribution. 
Through  the  studies  presented,  it  is  believed  the  standards  of  operation  will  be  raised  by  stimulating  activities 
in  attainment  of  the  l^est  practice  as  portrayed  in  the  pages  hereafter. 

From  the  inherent  nature  of  things,  effectiveness  of  operation  and  quality  of  service  vary  on  railroads 
in  the  same  proportion  as  the  personnel  of  management,  physical  character  of  the  country,  and  operating 
conditions  vary.  To  expect  all  railroads  to  operate  on  the  same  plane  of  economy  and  service,  is  l)eyond 
the  limits  of  reason,  yet  it  is  possible,  under  similar  operating  conditions,  to  approach  the  standards  at4;ained 

by  the  best. 

This  involves  no  theory  of  untried  experiments.  Comparisons  of  operating  costs  of  one  railroad 
with  another  will  not  in  itself  improve  the  effectiveness  of  performance,  but  lead  the  way  to  sound  conclusions 
upon  which  improvements  in  operation  can  be  made.     The  vital  thing  is  to  find  what  is  best,  who  is  doing 

it,  and  howl 

This  book  is  a  fulfilment  of  this  need.  As  the  most  practical  presentation  of  facts  ever  compiled  on 
the  operation  of  railroads,  it  is  offered  for  the  consideration  of  that  great  body  of  progressive  railroad  men  who 
are  striving  against  ever  increasing  odds  to  maintain  the  integrity  of  railroad  investments  and  the  high 
standard  of  service  on  American  railroads.  ^ttc^i^c^dxt   m.   ^nin 

New  York,  September  21,  1911. 


NOTE, 

The  analysis  of  railroad  operating 
costs  presented  in  the  following  pages  illus' 
trates  our  advanced  methods  in  dissecting 
railroad  statistics.  We  are  prepared  to 
furnish  cost  and  performance  data  on  any 
phase  of  railroad  operation. 

SUFFERN  &  SON. 


CONTENTS. 


Chapter  I  -Comments  on  information  furnished  by  Interstate  Commerce  Commission.  Total 
capitalization  per  mile  of  road  operated.  Gross  earnings  per  mile  of  road.  Population  per  mile  of  road, 
by  counties.  Density  of  traffic  (freight  and  passenger)  per  mile  of  road.  Percentage  o  operating  expenses 
to  gross  earnings.  Graphical  illustrations  for  the  leading  railroads  are:  Total  capitalization  per  mile  of 
road  operated.  Gross  earnings  per  mile  of  road.  Population  per  mile  of  road.  Density  of  traffic  per 
1,000  revenue  ton-miles  per  mile  of  road.  Percentage  of  operating  expenses  to  gro^  earnings  Conde,^ 
profiles  of  New  York  Central  Lines,  Pennsylvania  System,  Baltimore  and  Ohio,  Illinois  Central,  Chicago 
and  Northwestern,  Chicago  Burlington  and  Quincy,  Chicago  Rock  Island  and  Pacific,  Missouri  Pacific. 
Southern  Pacific  and  Union  Pacific,  Northern  Pacific,  Atchison,  Topeka  and  Santa  Fe. 

Chapter  II  —General  divisions  of  operating  expense,  and  discussion  of  the  factors  entering  into 
the  operating  costs  of  maintenance  of  way  and  structures,  maintenance  of  equipment  and  conducting 
transportation.  Graphical  illustrations  accompanying  are:  Difference  in  size  of  locomotives  haulmg 
same  train  on  level  and  on  grade.  Profiles  and  tables  showing  cost  of  freight  locomotive  repairs  and  fuel 
on  level  and  mountainous  country. 

Chapter  1 1 1. -Maintenance  of  way  and  structures.  Grade.  Curvature.  Clearances.  Bridges 
and  track.  Comparison  in  construction  of  Virginian  with  Missouri  Pacific.  Tunnels  on  the  Denver,  North- 
western and  Pacific.  Bridges  on  the  Florida  East  Coast.  Terminal  facilities  on  Wabash,  Pennsylvama 
and  New  York  Central.  The  broad  gauge  possibility.  The  Mallet  locomotive  and  limits  of  power  umts. 
Bridge  and  viaduct  construction  compared.  Track  construction.  The  track  labor  problem.  Conclusions 
and  recommendations  on  maintenance  of  way.  Graphical  illustrations  accompanying  are:  Percentage 
maintenance  of  way  and  structures  to  total  operating  expense.  Maintenance  of  way  and  structures  per 
locomotive  mile.  Relation  of  traffic  to  maintenance  of  way  costs  on  representative  eastern  and  western 
railroads. 

Chapter  IV  —Maintenance  of  equipment.     Ratio  to  total  operating  expense.     Reasons  for  increase 
in  cost  of  maintenance  of  equipment.     Tractive  force  of  locomotives.     Capacity  of  freight  cars.     Comparison 
between  size  of  locomotives  and  cars.     Labor  conditions  ea^t  and  west  of  Chicago  and  rates  of  pay.     Loco- 
motive maintenance.     Repairs  to  locomotives  per  locomotive.     Weight  on  drivers  per  locomotive.     Repairs 
to  locomotives  per  locomotive  mile.     Miles  per  locomotives,  all  classes.     Miles  per  freight  locomotive. 
Miles  per  passenger  locomotive.     Repairs  and  renewals  per  locomotive.     Repairs  and  renewals  of  loco- 
motives per  ton  of  tractive  force.     Repairs  and  renewals  of  locomotives  per  work  unit.     Freight  car  mam- 
tenance      Maintenance  of  freight  cars  per  car  owned.     Maintenance  of  freight  cars  per  1,000  car  miles. 
Passenger  car  maintenance.     Maintenance  of  passenger  ears  per  car  ouTied.    Maintenance  of  passenger 
cars  per  1  000  passenger  car  miles.     Shop  machinery  and  tools.     Maintenance  of  shop  machinery  and  tools 
per  work  unit      Graphical  illustrations  for  leading  railroads  accompanying  are:  Ratios  of  accounts  to  total 
operating  expense.     Ratio  maintenance  of  equipment  to  total  operating  expense.     Capacity  of  freight  cars. 
iTcomotive  tractive  force.    Average  wages  paid  various  employes  east  and  west  of  Chicago.     Repairs  to  loco- 
motives per  locomotive.     Average  weight  on  drivers  per  locomotive.     Repairs  to  locomotives  per  imle. 
Miles  per  locomotive,  all  classes,  freight,  passenger.     Repairs  and  renewals  of  locomotives  per  locomotive, 
per  locomotive  mile,  per  ton  of  tractive  force,  per  work  unit.     Maintenance  of  freight  cars  per  car  owned 
per  1,000  car  miles.     Maintenance  of  passenger  cars  per  car  owned,  per  1,000  car  miles.     Maintenance  of 
shop  machinery  and  tools  per  pound  of  tractive  force,  per  work  unit. 

Chapter  V  —Conducting  transportation.  Ratios  of  conducting  transportation  and  maintenance 
of  property  to  total  operating  expense.  Cost  of  conducting  transportation  per  1,000  train  miles.  Principal 
items  of  expense  in  conducting  transportation,  supervision,  train  supplies  and  expenses,  engine  supplies 

5 


and  expenses,  claims,  damages  and  miscellaneous  expenses,  stationmen  and  dispatchers,  locomotive  fuel, 
enginemen,  yard  and  trainmen's  wages.  Cost  of  fuel  per  engine  mile.  Cost  of  fuel  per  work  unit.  Cost 
of  fuel  per  ton.  Fuel  consumption  on  leading  railroads.  Tons  of  fuel  per  work  unit.  Cost  of  supervision. 
Enginehouse  expenses  per  work  unit.  Engine  supplies  per  work  unit.  Train  supplies  and  expenses  per 
1,000  car  miles.  Traffic  expense.  General  expense.  Graphical  illustrations  for  leading  railroads  are: 
Ratio  of  maintenance  of  property  and  conducting  transportation  to  total  operating  expense.  Cost  of  con- 
ducting transportation  per  1,000  train  miles,  eastern  and  western  roads.  Division  of  conducting  transporta- 
tion on  large  roads.  Cost  of  fuel  per  engine  mile,  eastern  and  western  roads,  for  5  year  period  ending 
1910.  Cost  of  fuel  per  engine  mile,  eastern  and  western  roads,  per  cent,  increase  5  year  period  ending  1910 
over  5  year  period  ending  1905.  Cost  of  fuel  per  work  unit,  eastern  and  western  roads.  Per  cent,  increase 
and  decrease  in  cost  of  fuel  per  work  unit,  eastern  and  western  roads.  Tons  of  fuel  per  work  unit,  eastern 
*nd  western  roads.  Tons  of  fuel  per  work  unit.  Enginehouse  expenses  per  work  unit.  Engine  supplies  per 
work  unit.     Train  supplies  and  expenses  per  1,000  car  miles. 

Chapter  VI. — Conclusion  and  summary.  Relation  l)etween  capitalization,  gross  earnings,  etc. 
The  "Operating  Ratio."  Units  for  comparisons  of  expense.  "External"  operating  conditions.  Inter- 
state Commerce  Commission  data.  Factors  entering  into  cost  of  transportation.  Maintenance  of  way 
and  equipment.     The  labor  question.  < 


Railroad  Operating  Costs. 


CHAPTER  I. 

Every  railroad  in  the  United  States  that  handles  any  interstate  traffic  is  required  to  file  annual 
reports  with  the  Interstate  Commerce  Commission,  on  uniform  blanks  prepared  by  its  statistician  and 
bound  in  book  form.  These  annual  reports  present  many  figures,  of  various  kinds :  figures  from  the  finan- 
cial accounts;  statistics  of  performance;  information  in  respect  of  the  more  important  sorts  of  physical 
properties;  and  traffic  data,  highly  condensed;  but  a  great  many  things  are  missing  which  it  is  necessary 
for  a  railroad  operator  or  analyst  to  know  in  order  to  utilize  these  figures  in  making  accurate  comparisons 
between  different  railroads-comparisons  that  will  instruct,  not  mislead  him.  He  requires  to  have  informa- 
tion from  other  sources:  an  intimate  knowledge  of  local  conditions-information  general  and  special-to 
enable  him  to  make  judicious  comparisons,  draw  trustworthy  inferences  and  reach  sound  conclusions. 

The  original  reports  are  available  for  examination  in  the  offices  of  the  Commission  at  Washington, 
but  no  printed  copies  are  made  and  only  a  very  few  of  the  most  general  items  are  extracted  for  publication 
in  the  Commission's  statistical  reports.  Indeed,  the  paucity  of  useful  information  to  be  gleaned  from  any 
published  reports  of  railroad  operations  and  affairs  becomes  painfully  evident  to  the  investigator  seeking 
to  make  comparisons  that  will  be  valuable  to  practical  railroad  operators. 

With  a  few  exceptions-as  the  Union-Southern  Pacific  System,  whose  reports  are  models  of  real 
information,  unequalled  in  English  speaking  countries-annual  reports  to  stockholders  are  of  little  use  to 
any  but  financial  men  (and  often  of  doubtful  value  to  these),  while  the  summaries  appearing  m  the  vanous 
financial  manuals  are  almost  devoid  of  information  in  respect  of  operating  conditions. 

If  we  turn  to  the  bulky  statistical  tome  issued  annually  by  the  Interstate  Commerce  Commission, 
we  find  a  thousand  closely  printed  pages  filled  with  tables  of  almost  useless  data  and  summaries,  while  the 
information  absolutely  essential  to  any  clear  picture  of  physical  and  operating  conditions  on  the  severs^ 
railway  properties  in  the  United  States  is  conspicuous  by  its  absence,  notwithstanding  an  immense  amount 
of  information  of  great  value  is  sleeping  in  these  reports  made  by  the  roads  to  the  Commission  from  which 

this  volume  is  derived.  _  _x    <•     -i      ^ 

Comparisons  of  operating  costs  have  lately  received  such  widespread  attention,  on  the  part  of  railroad 
men  and  of  the  public  and  the  National  and  State  governments  as  well,  that  an  analysis  of  some  of  the  facts 
which  may  be  learned  from  the  detailed  annual  reports  reposing  on  the  Commission's  shelves  appears  to 
be  well  worth  the  making  and,  perhaps,  of  some  immediate  value.  The  writer  presents  herewith  such  a 
study  based  in  the  main  upon  the  railroads'  annual  reports  to  the  Interstate  Commerce  Commission  (ampli- 
fied somewhat  by  information  obtained  from  the  Census  Bureau  and  from  various  railroad  officials)  in  respect 
of  earnings,  operating  expenses,  physical  characteristics  and  operating  conditions  of  the  representative 
railroads  of  the  country,  but  without  special  reference  to  rates  or  managements. 

Previous  to  July  1,  1907  there  was  supposed  to  be  a  definite  system  of  compiling  railroad  accounts 
and  statistics  but,  as  each  railroad  interpreted  the  Commission's  classifications  of  separating  expenses,  etc., 
in  accordance  with  its  own  views,  reliable  comparisons  of  railway  statistics  covering  earnings,  capitalization, 
cost  of  operation,  etc.,  were  not  to  be  made. 

The  Hepburn  Act  of  1906  gave  the  Interstate  Commerce  Commission  complete  authority  and  control 
over  railway  accounts  and  the  Commission  after  long  and  tactful  negotiations  with  the  accounting  officers 
of  the  roads  promulgated  a  revised  series  of  accounting  rules  and  classifications  of  accounts,  and  since  July  1 , 
1907  the  railroads  have  been  keeping  their  records  and  submitting  their  reports  accordingly.  While  these 
rules  permit  far  greater  variation  from  a  uniform  standard  than  is  generally  understood  their  chief  defect, 
from  the  standpoint  of  this  paper,  arises  out  of  the  lack  of  operating  details  and  units-a  defect  due  to  the 
fact  that  the  classifications  were  got  up  by  accountants  who  were  less  familiar  with  operating  than  v^ith 

financial  records. 

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For  instance,  among  all  of  the  voluniiiious  figures  siil)inlttpd  by  the  various  railroads,  the  I.  C.  C. 
reports  give  no  place  to  th*-  statement  of  the  gross  tonnage  hauled  one  mile  (a  very  important  item) — and 
in  fact  there  are  hut  few  railroads  in  the  I'nited  States  that  compile,  nnieh  loss  report,  this  most  valuable 
statistical  item. 

The  capitalization  of  a  railroad,  wliile  most  important  from  a  financial  standpoint,  is  of  but  little 
moment  in  our  present  analysis.     In  order  to  show,  in  part  the  great  difference  in  capitalization  of  the  various 

8 


Gms  £AmmsFC/^  /r/ifOFmD. 

/9/0. 


SOOO     /POOO  m)0     20006  2S000   30000    350OO   4OOO0    45000 


//rcf/rr. 

L5.S-r7x5. 

pfmM. 
/rm.co. 

/LL.C£NT 
CjS-A. 

rro.  F/{c. 

CJ?/S-P 

c<f-/Kyr. 
Gr.noR. 


/iOR.P/lC. 


9     5000    looeo  /sooo  zooto  esooe    30000  asooo  «icioo  4iooo 


Flo.  2. 
roads,  and  in  part  the  unsoundness  of  a  commonly  used  unit  of  measurement  of  capital,  (the  mile  of  road), 
a  chart  is  presented.  Fig.  1,  showing  the  total  stocks  and  bonds  outstanding  per  mile  of  road  oiwrated.  as 
reported  in  the  Interstate  Commerce  Commission.  . 

In  making  analyses  of  railroad  returns,  from  an  operating  standpoint,  the  Brst  item  to  consider  is 
the  gross  operating  revenue,  or  gross  earnings.  A  chart  is  next  presented.  Fig.  2,  illustrating  the  gross 
earnings,  per  mile  of  track  operated,  for  the  representative  roads  of  the  country.  The  unit  here-the  mile 
of  track— is  a  better  unit  than  the  road,  but  it  is  a  misleading  measure  at  best. 


HYC€NTZf 
B.€fO. 


C€:A 

JJ.L.C£NT 
SYSTEM 

SOa  RY, 


6TN0R. 
SYSTEM 

NOR  RAC. 
SYSTEM 

UNiONPAC. 
CMfkStPRY 

^  ac  Q 

SYSTCS^ 

CR.t€iR 
SYSTEM 

MO,  PAC 
SYSTEM 


POPULATION  PER  MILE  Or  ROAD 

By  Counties 

O         SOO      ^OOO     fSOO    ^OOO    Z500     5000     3500     4-000     ASOO 


ATesS.r 
SYSTEM 

SOU  PAC 
SYSTEM 


500     /ooo 


/SCO    zooo 

Fig.  3. 


ZSOO      3CO0     3SO0        4.000    4S00 


Of  the  two  items  that  determine  gross  earnings,  volume,  and  class,  of  traffic,  the  former  is  the  more 
important:  granted  a  large  volume  of  business,  even  if  it  be  of  low-rate  class,  a  railroad's  earnings  will  be 
sufficiently  large  to  make  it  profitable,  for  the  rates  more  or  less  take  care  of  themselves  and  the  railroad 
business  is  particularly  subject  to  the  law  of  increasing  return — its  expenses  do  not  rise  in  proportion  to 
increase  of  business. 

Between  competing  roads  in  the  same  territory,  or  connecting  the  same  terminal  centers,  the  trafl&c 
department  (the  **  sales"  department)  is  a  most  important  factor  in  securing  freight — and  passengers — which 
is  to  say,  earnings.  But  the  great  factor  is  industrial  development; — particularly  in  the  coal  and  iron 
trades,  which  produce  heavy  tonnage.  This  industrial  development,  and  agricultural  development,  also, 
may  lie  in  large  part  beyond  the  termini  of  the  roads  that  haul  the  shipments  attributable  thereto. 

10 


The  prosperity  of  a  railroad  bears  a  fairly  direct  relation  to  the  people  served,  but  these  people  may 
live  beyond  its  territory.  One  road  may  run  through  a  well  developed  community,  settled  with  thriving 
manufacturing  towns  which  develop  enough  business  to  maintain  the  railroad  on  a  pajnng  basis,  while 
another  road  traverses  a  sparsely  populated  country  for  hundreds  of  miles  where  the  revenue  received  from 
local  business  is  practically  nothing  and  yet,  if  this  latter  road  constitutes  a  through  line  connecting  great 
commercial  sections,  its  revenues  may  be  the  greater. 

The  accompanying  chart,  Fig.  3,  shows  the  density  of  contiguous  population  per  mile  of  road,  obtained 
by  computing  the  population  of  the  counties  traversed  by  each  road  and  divided  by  the  total  miles  of  road 
operated,  and  illustrates  comparative  densities  of  population;    while  comparisons  of  population  and  of 

earnings  appear  in  the  text  following. 

The  Chicago  and  Alton  with  a  contiguous  population  of  4,504  per  mile  has  gross  earnings  of  $13,385 
per  mile;  the  Illinois  Central,  1,568  people  per  mile  and  $12,500  earnings;  the  Southern  Pacific,  563  people 
and  $13,000  earnings.  The  Baltimore  &  Ohio,  with  4,335  people  and  the  Union  Pacific,  with  531,  have 
gross  earnings  of  $20,000  and  $15,000  per  mile  respectively.  The  Buriington  and  the  Rock  Island  lie  in 
the  same  general  territory;  the  gross  earnings  of  the  former  are  $10,000  per  mile  and  its  population  i^er  mile, 
938;   while  the  gross  earnings  of  the  latter  are  $8,500  and  its  population  per  mile,  1,322. 

The  grades  over  which  a  railroad  operates  are  exceedingly  important  when  considering  operating 
expenses  but  have  but  little  to  do  with  the  gross  earnings.  In  order  to  illustrate  the  difference  in  the  grades 
several  condensed  profiles  are  presented  herewith. 

The  volume  of  business  handled,  relatively  to  length  of  time,  determines  the  "density"  of  the  traffic. 
Statements  furnished  by  railroads  show  the  revenue  ton  miles  of  freight  per  mile  of  road.  Some  comparisons 
of  traffic  densities  are  shown  in  the  following  diagram,  Fig.  4. 

A  road's  traffic-density  figures  for  a  series  of  years  show  at  a  glance  the  variations  in  business  from 
year  to  year,  and  in  comparisons  between  roads  this  unit  affords  a  concise  index  of  the  relative  quantities 

of  revenue  traffic  handled. 

It  is  interesting  in  comparing  various  roads  to  consider  together  the  grades,  the  gross  earnings  and 

the  density  of  traffic. 

First,  let  us  compare  three  roads  lying  in  the  same  general  territory:    the  Pennsylvania   Railroad. 

the  New  York  Central  and  the  Baltimore  &  Ohio. 

Freight  Freight 

Earnings  Density 

New  York  Central $15,850  2,548 

Pennsylvania  Railroad 29,819  5,139 

Baltimore  &  Ohio 15,654  2,712 

The  freight  earnings  per  mile  of  track  and  the  freight  density  (1,000  revenue  ton  miles  per  mile  of 
track)  go  hand  in  hand:  the  freight  densities  on  the  New  York  Central  and  the  Baltimore  &  Ohio  are  about 
equal  and  the  earnings  are  nearly  the  same;  the  density  of  freight  traffic  on  the  Pennsylvania  Railroad  is 
nearly  double  that  on  the  New  York  Central  and  the  Baltimore  &  Ohio,  with  freight  earnings  in  the  same 
proportion. 

When  we  consider  the  passenger  traffic,  a  like  relation  between  density  of  traffic  and  volume  of  earn- 
ings is  to  be  seen : 

Passenger  Passenger 

Earnings  Density 

New  York  Central •  ■     $8,285  518 

Pennsylvania  Railroad 7,889  410 

Baltimore  &  Ohio 3,267  172 

The  grades  of  the  Pennsylvania  Railroad  and  the  Baltimore  &  Ohio  are  similar  in  nature  and  not 
very  far  from  equal  in  extent,  while  the  New  York  Central  has  decidedly  lower  grades  than  either. 
Summed  up,  the  ruling  grades  on  various  lines  and  branches  of  the  systems  are: 

Ruling  Grade 

New  York  Central 20  to     .86% 

Pennsylvania  Railroad 36  to  1 .  75% 

Baltimore  &  Ohio 70  to  1 .80% 

11 


DENSITY  or  TRAFFIC, 

1000  Revenue,  Ton- Miles  Pi r  Mile  of  Road 

19/0 


O       300     /OOO     tSOO    ZOOO  2500     300O    3S00     4000   4500    SOOO 


NY  CENT 
L.S&M.S 

PENN  RR 
PCNNCO. 
SOURY 
/IL.CfNT 

C€sA 

MOPAC 
CRie.P 
Cc^NW 

UNION  PAC 

50U.PAC. 

GTNOR. 
NORPAC. 


O        SOO      /OOO   /SOO  ZOOO    Z500    5000    35O0    4000  4500    5000 

Fig.  4. 

The  Pennsylvania  Railroad  with  .similar  grades  to  the  Baltimore  &  Ohio  has  double  the  traffic  density 
and  double  the  earnings;  the  Baltimon^  k  Ohio  with  its  heavy  grades  shows  the  same  freight  earnings  as 
the  New  York  Central  with  its  very  low  grades. 

The  splendid  showing  of  the  Pennsylvania  illustrates  the  force  of  a  previous  comment  on  industrial 
geography  and  the  coal  and  iron  trades. 

Now  to  compare  an  eastern  with  a  western  road,  each  crossing  a  mountain  range,  and  with  grades 
about  equal. 

Freight 
Earnings       Density 

Baltimore  &  Ohio $15,654         2,712 

Union  Pacific 11,033  1,091 

The  freight  density  on  the  Union  Pacific  is  only  40%  of  that  on  the  Baltimore  &  Ohio  while  the 
earnings  per  mile  are  70%  as  great,  indicating  much  higher  rates  per  ton  per  mile  on  the  Union  Pacific. 
Passenger  statistics  show  like  ratios:     the  densities  are  practically  the  same,  while  the  earnings  of  the  Union 

Pacific  are  25%  greater. 

12 


Passenger 
Earnings       Density 
$3,267  172 

4,253  167 


mcmm£Ofo^/fMm  f//r/yjfj  ro  c/fojs  fM//mj. 


BS-O. 


T5SS\ 

/908 
IML 

/906 
/309 

l2f(L 

/9m 

/9(?8 

pfm.co.  /SOS 

J9/0 
/906 

J_ /9/0 

/9oe 

/908 

/9/0 
/POS 

/10,d7C.     /903 
/9/D 

/906 

C/^J^/"      /909 

/P/0 

1908 


-4 
/9i 


CSSrQ    ^ 
mS 

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l93d 

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soumc  fsos 

/S/0 

im 

G/:/m  ^sc9 

19/0 

'  /908 

/9/0 


SO 


SO 


30 


90 


Fia.  5. 


To  compare  two  western  roads  with  similar  grades,  in  like  territory,  let  us  take  the  Northern  Pacific 

and  the  Great  Northern.  .  , 

Freight 

Earnings      Density 

Northern  Pacific $8,457  940 

Great  Northern 6,693  814 

Here  we  find  that  constant  ratio  between  density  of  traffic  and  gross  earnings  which  the  parallelism 
of  the  roads  and  their  unity  of  management  would  load  us  to  expect. 

13 


Passenger 
Earnings       Density 
$4,206  169 

2,442  93 


'V 


The  foregoing  examples  illustrate  the  absence  of  direct  relations  between  the  extent  of  th.  rw  .    i  .■ 
..vng  along  the  line  the  density  of  traffic,  the  physical  characteristics  ^^^^t^^  '^'         "" 

and  in  h  """"  .  «'""'''  ?'  '"^^""^  ''"■''^•'"''^'  '"  ""^  '^P"^*^  <"  '"e  Interstate  Commerce  Commission 
Lrn LI     'T'"t      T"'  "'""'''"•  ''*^'""'"  ^*'-^«  '^  "''''  "P""  'he  ratio  of  operating  expense   toZ^ 

the  f-.ti^t'  ^f""''  V^"  '^^'""Pti""  ^««dily  may  be  shown-if  any  presumption  is  needed  to  demonstrate 
the  futility  of  usmg  for  a  measure  of  efficiency,  the  mathematical  ratio  between  two  quantities  on^of  whth 
may  vary  mdependently  of  any  factor  of  efficiency  of  operation-as  when  ean,ing'rir.^Iauronltr 
rates  on  an  unchanged  tonnage  of  traffic.  wcause  ol  higher 

For  several  years  past  the  Union  Pacific  has  maintained  its  ratio  of  op<.rating  expenses  to  «-oss 
earnrngs  at  a  lower  figure  than  any  other  railroad  in  the  United  States.     If  the  ratio  o^o^ra  "reln^: 
to  gross  eammgs  is  the  all  important  and  fundamental  basis  of  comparison   the  Union  T  a"^  Z 
efficiently  operated  railroad  in  the  country.     This  ratio  was  SoV  fTZ  fi"'    I     "'*"'"«'=  "*  ^^e  most 
and  5.%  ..  ,.  ,,,  ,„„^  3„^  ,,^^  ^ZZ^XZ  ^  Z^^I^^Z 

It  is  evident  that  the  increase  in  gross  earnings  was  the  controlling  facto.     .  the  reduction  of  the 
ratio  of  operating  expen.ses  to  gross  earnings.  reduction  of  the 

in  tr  J"''''""*""'''  T^''u  "'.*'"'  °'^™""^  '"^""^  ^""°«  '^"^^  '™°  y^^^  reveals  an  increase  of  nV 
m  traffic  expenses  and  further  investigation  develops  that  the  increa.se  in  gross  earnings  is  to T^a  trH.uL^ 
Iff    part  to  the  ability  of  the  traffic  department  to  secure  the  transportation  of  commodi  fes^h  g^ 

i;  "rtrrde;::::  ■" '""  "^^^  -  -'-'  *~  -  •-«-"»  -^  whichiiiu.,trattt: 

The  Union  Pacific  had  freight  earnings  of  «1 1,033  on  a  freight  densitv  of  l.Om :  the  Great  Northern 
a  transcontinental  competitor,  had  freight  earnings  of  »6,693  per  mile  in  1910  a,  d  a  fre  ght  din  ifv  of  814 
From  the  last  figures  it  is  clear  that  the  Union  Pacific  handles  an  entirelv  different  a~  7  [,! 

than  the  Great  Northern  and  consequently  receives  a  higher  average  cX^nfin     1^    X^^^^^ 

tTu"  :r"  """"f '"*  '"  ""''■  '"'"*  °"  ">^  -''  °f  OP-''""^-  If  the  lemuneration  perZ  fw 
freight  was  he  same  on  the  Great  Northern  as  on  the  Union  Pacific,  the  ratio  of  op^-rating  ex^nseTtl^oss 
earnings  of  the  former  would  I.  reduced  from  61%  to  52%;   which,  compare  with  the  5l4  onThe  IW 

r^lteeffiXT-lir  ""'^^  "  "^  '^  ™"^  «^  '"—  deductions  Tegar^S: 

di«.r,  ^"""'T  '^"■"Pa"^''"^  With  diverse  results  may  be  made  between  the  several  railroads  shown  in  the 
d  agram  and  may  be  used  to  show  clearly  that  the  ratio  of  operating  expenses  to  gro.,  earnings  is  not  a 
reliable  basis  of  comparison  of  economy  of  operation. 

Operating  expenses  are  dependent  upon  operating  conditions  and  the  several  accounts  for  the  various 
components  thereof  must  be  analysed  separately  to  determine  whether  efficient  operation  or  he  opZte 
exists.     Subsequent  chapter,  present  analyses  of  detailed  accounts  of  operating  costs 


^ 


14 


I'l 


I 


New  yorK 


-Lake  Shore  and  Michigan  Southern 


-New  York  Central 


Condensed  Profile  of  the  New  York  Central  Lines. 


I 


\ 


Ft  Per  Mile  "Meat 


PerCeni     West  _ 


rt  Per  Mile  East 


Per  Cenl     ^asi 


"^^ 


Miles  From  Jersey  City. 


H.MC 


Condensed  Profile  of  Ihe  Pennsylvania  System. 


I//.|< — Indiana 


-PennsLjIvania 


!^W.  Virginia^  Manjland — ^ 


^i<-Pa--h-/V.j:-^ 


Condensed  Profile  of  the  Baltimore  and  Ohio  Railroad. 


Mississippi 


Illinois 


CVf 

1 

OS 

00 

'U 

^ 

^ 

^ 

o 

^ 

^ 

-t 

Q 

£: 

.Vi 

?  . 

§ 

f/ac 


Condensed  Profile  of  the  Illinois  Central  Hail  road. 


I'i 


Condensed  Profile  at  The  Chicago  and  North  Western  Railway. 


Colorado 


KJU! 


Condensed  Profile  of  the  Chicago,  Burllnqton  and  Ouincy  Rallwaif. 


Miles  from  Chicago 


Condensed  Profile  of  the  Chicago.  Boch  Island  and  Pacific  RailwaLj. 


■Colorado 


n  Per  Mile  Wes1 


Per  Cent    Wesi 


t« 


IS 


Ft  Per  Mile  East  ^  ^ 
Percent    Eastr^ 


Miles  rrom  St  Louis 


use 


Condensed  Profile  of  fhe  l^issouri  Pacific  Pail  way. 


y-California 


Condensed  Profile  of  the  Southern  Pacific  and  Union  Pacific  Railroads. 


-Washington 


Miles  From  6t  Paul 


Condensed  Profile  of  ihe  Northern  Pacific  Pailwaq. 


.    .Ji^    ..:j^  -*'■ 


V 


California 


Miles  From  Chicatjo 


Condensed  Profile  of  fhe  Htchison.  TopeHa  and  Santa  Fe  mimui 


I 


Railroad  Operating  Costs. 


CHAPTER  II. 


n 


The  operating  expenses  of  a  railroad  are  dependent  largely  upon  local  conditions  and  must  be  separ- 
ately analyzed  in  order  to  determine  efficient  operation.  The  usual  railroad  reports  make  five  divisions 
of  expenses,  as  follows: 

1.  Maintenance  of  Way  &  Structures, 

2.  Maintenance  of  Equipment, 

3.  Transportation  Expense, 

4.  Traffic  Expense, 

5.  General  Expense. 

The  maintenance  accounts  are  most  important  items  which  require  careful  examination  in  the  depart- 
ment of  operating  expenses.  These  maintenance  costs,  like  all  other  items  in  a  railroad  report,  must  be 
judged  relatively  to  other  things — to  the  showing  made  in  the  same  items  in  prior  years,  and  to  the  showing 
made  in  the  same  matters  by  other  roads  of  similar  type  operating  in  the  same  territory.  Roads  with 
double  track  must  spend  more  for  Maintenance  of  Way  per  mile  than  those  having  only  single  track ;  roads 
handhng  a  heavy  volume  of  business,  as  reflected  by  the  traffic  density  and  the  average  train  load,  will  need 
to  spend  more  for  maintaining  their  equipment  and  also  their  track  than  those  doing  lighter  business. 

In  judging  the  Maintenance  of  Way  expenditures  of  a  given  fine,  the  physical  characteristics  must 
in  all  cases  come  in  for  careful  consideration.  It  is  manifestly  unfair  to  compare  the  Maintenance  of  Way 
costs  (per  mile  of  track)  on  the  Union  Pacific  with  the  Chicago  &  Alton.  The  Chicago  &  Alton  runs  through 
a  country  where  heavy  rains  are  frequent,  causing  the  ties  to  decay  in  a  short  time.  The  ballast  used  is 
gravel  or  cinders  either  of  which  is  none  too  good  and  easily  washed  out,  resulting  in  a  heavy  maintenance 
cost.     Some  of  the  line  is  ballasted  with  crushed  stone  which  is  excellent  ballast,  but  very  expensive. 

On  the  other  hand  the  Union  Pacific  runs  through  a  comparatively  dry  or  semi-arid  country  where 
the  ties  seldom  are  removed  on  account  of  decay  and  the  ballast  is  of  the  very  best  and  cheapest,  it  being 
disintegrated  granite  from  Sherman  Hill,  near  Cheyenne,  Wyo.  This  ballast  is  of  the  very  best  quality 
and  is  procured  at  as  low  a  cost  as  any. 

The  average  cost  of  Maintenance  of  Way  for  the  past  ten  years  is  $1,260  per  mile  on  the  Union 
Pacific  as  against  $1,380  for  the  Chicago  &  Alton.  This  does  not  necessarily  mean  that  the  track  of  the 
Union  Pacific  is  not  kept  up  as  well  as  the  track  of  the  Chicago  &  Alton. 

If  a  railroad  is  obliged  to  maintain  expensive  terminals  it  should  spend  more  than  a  railroad  of  the 
same  type  in  other  respects  which  does  not  have  this  characteristic.  To  compare  two  roads  in  the  same 
territory;  the  St.  Joseph  &  Grand  Island  has  very  inexpensive  terminals,  while  the  Kansas  City  Southern 
maintains  elaborate  terminals  at  Kansas  City  and  particularly  at  Port  Arthur,  Texas.  The  St.  Joseph  & 
Grand  Island  spent  in  1908  only  $475  per  mile  for  Maintenance  of  W^ay,  and  averaged  $700  per  mile  for 
the  past  ten  years,  yet  this  small  amount  has  apparently  been  sufficient  to  maintain  the  property  at  as  high 
a  standard  as  has  been  necessary,  and  relatively  is  probably  as  good  as  the  Kansas  City  Southern's  average 
for  nine  years  of  a  little  more  than  $1,000  per  mile. 

The  Maintenance  of  Way  expenditures  per  mile  vary  all  the  way  from  $700  on  the  St.  Joseph  &  Grand 
Island  to  over  $10,000,  as  the  ten  year  average  on  the  Pittsburg  &  Lake  Erie.  This  enormous  difference 
is  explainable  when  we  realize  that  all  of  the  mileage  operated  on  the  Pittsburg  &  Lake  Erie  has  two  or  more 
tracks  while  the  St.  Joseph  &  Grand  Island  operates  only  a  single  track.  Again  the  Pittsburg  &  Lake  Erie 
has  a  freight  density  of  9  million  revenue  ton  miles  per  mile  of  road  and  an  average  revenue  freight  train 
load  of  1,200  tons  as  compared  to  the  St.  Joseph  &  Grand  Island  with  a  freight  density  of  less  than  Is  million 
ton  miles  and  a  revenue  freight  train  load  of  220  tons. 

15 


'I 


The  usual  reports  of  railroad  operation  as  published  show  operating  costs  per  mile  for  one  period 
compared  with  another  period  (month,  year,  or  decade)  and  unless  the  reader  is  familiar  with  the  road  in 
(juestion  the  deductions  drawn  from  a  perusal  of  the  figures  are  very  unsatisfactory. 

The  Atchison,  for  example,  expended  $1,886  per  mile  for  Maintenance  of  Way  and  Structures  in 
1910  as  compared  with  $793  in  1901.  Without  a  knowledge  of  the  influencing  conditions  the  amount  of 
business,  etc.,  for  these  two  periods,  the  above  figures  would  indicate  that  the  expenditures  in  the  year  1910 
were  exhorbitant  as  compared  with  1901  and  a  careful  analysis  of  the  entire  situation  is  necessary  in  order 
to  determine  a  relative  comparison.  A  study  of  the  business  handled  develops  the  fact  that  the  freight 
density  (gross  ton  miles  per  mile  of  road)  more  than  doubled  during  the  above  mentioned  period,  thus 
indicating  a  very  heavy  increase  in  the  volume  of  business.  This  fact,  together  with  a  35%  increase  in 
the  weight  of  locomotives  and  25%  increase  in  freight  cars  has  resulted  in  a  proportional  growth  to  the  wear 
and  tear  of  track  and  presents  the  matter  in  a  difficult  light. 

It  is  therefore  evident  when  judging  Maintenance  of  Way  expenditures  that  many  items  must  be 
taken  into  consideration  other  than  the  mileage  operated,  or  the  gross  earnings.  Far  more  important  are 
the  character  and  volume  of  business,  the  topography  of  the  country  and  the  weight  of  equipment,  all  of 
which  must  Ik*  given  due  and  careful  consideration. 

In  the  Maintenance  of  Equipment,  the  topography  of  the  country  governs  to  a  large  extent.  In  a 
comparatively  level  country,  locomotives  are  the  medium  size  with  large  driving  wheels  and  are  able  to 
run  at  fairly  high  speeds,  wliile  locomotives  in  a  mountainous  district  are  nuich  heavier,  are  equipped  with 
small  driving  wheels  and  must  run  at  slow  speeds,  thus  increasing  the  Maintenance  of  Equipment  cost. 
The  service  conditions  are  more  severe  upon  the  locomotive  and  the  costs  of  locomotive  Repairs,  as  well 
as  freight  and  passenger  car  repairs,  are  correspondingly  higher. 

A  graphical  representation  is  given  herewith  showing  the  difference  in  size  of  locomotives  necessary 
to  haul  the  same  train  on  level  track  and  on  heavy  grade. 

The  cost  of  locomotive  maintenance  and  operation  is  from  50';{  to  60%  higher  on  the  territory  with 


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Graphical  representation  of  difference  in  size  of  locomotives  hauling  same  train  on  level  and  on  grade. 

heavy  grades  than  where  grades  are  a  negligible  quantity,  even  though  the  capacity  of  the  locomotives  on 
the  grades  may  be  much  greater. 

The  mileage  made  by  heavy  mountain  locomotives  is  manifestly  lower  than  locomotives  running 
in  a  prairie  country.  The  large  consolidated  and  Mikado  type  freight  locomotives  average  about  2,000 
miles  per  month  as  compared  to  3,000  or  3,500  miles  per  month  made  by  freight  locomotives  in  a  prairie 

10 


I 


country.  It  is,  therefore,  decidedly  unfair  to  compare  locomotive  maintenance  costs  on  a  mileage  baas 
only. 

To  contribute  a  graphical  representation  of  the  difference  in  the  topography  of  level  and  mountainous 
districts,  portions  of  profiles  are  given.  Under  the  profile  illustrating  the  level  country  is  shown  the  density 
of  traffic,  with  the  cost  of  locomotive  repairs  and  fuel  per  1 ,000  gross  ton  miles.  Beneath  the  profile  illus- 
trating the  mountainous  section,  is  shown  the  same  information,  also  the  cost  of  repairs  and  fuel  for  a  twelve 
months  period. 

On  the  level  territory  the  density  of  freight  traffic  was  70.1%  greater  than  on  the  mountainous 
country.  From  the  following  statement  tabulated  from  official  data,  it  is  evident  that  locomotive  exiK'uses, 
repairs,  and  fuel  are  59.1%  greater  in  the  mountainous  country  than  in  the  level  country. 

Cost  of  Freight  Locomotive  Repairs  and  Fuel  on  Level  and  Mountainous 

Country  for  12  Months  Period. 


Level  Country 

1,000  Gross  Ton  Miles 5,300,827 

Density  of  Traffic,  per  mile,  1,000  G.  T.  M 6,884 

Total  Cost  of  Locomotive  Repairs  and  Fuel $1,396,729 

Cost  of  Locomotive  Repairs  and  Fuel  per  1,000  G.  T.  M 0.264 


Mountainous  Country 

1,000  Gross  Ton  Miles 4,049,015 

Density  of  Traffic,  per  road  mile,  1,000  G.  T.  M -*.049 

Total  Cost  of  Locomotive  Repairs  and  Fuel $1,699,182 

Cost  of  Locomotive  Repairs  and  Fuel  per  1,000  G.  T.  M 0.420 

At  Traffic  Density  in  level  country,  increased  cost  of  Repairs  and  Fuel  would  be $1,190,000 

The  cost  for  locomotive  repairs  and  fuel  is  thus  59  per  cent  greater  for  the  mountainous  districts 
than  for  the  level  districts,  although  compound  locomotives  are  used  and  shop  practices  and  supervision 
of  fuel  are  the  same  on  both  territories.  Nevertheless  it  would  be  unreasonable  to  expect  to  bring  the  grades 
of  the  mountainous  districts  down  to  those  of  the  more  level  districts. 

17 


\ 


Cost  of  Locomotive  Repairs  and  Fuel  in  Level  and  Mountainous  Country. 

Main  Line  Freight— 12  Months  Period. 

Level  Mountainous 

Country  Country 

Total  1,000  Gross  Ton  Miles .-•■ 5,300,827  4,049,015     ' 

r»     A  Tv^i  770  1,000 

Road  Mileage. 

Density  of  Traffic,  per  road  mile,  1,000  Gross  Ton  Miles 6,884  4,049 

Total  Cost  of  Repairs «    599,689  $   647,886 

Total  Cost  of  Fuel • T^W^^  "^^^ 

rp^^^l $1,396,729  $1,699,182 

Cost  of  Repairs,  per  Road  Mile *  799  $  648 

Cost  of  Fuel,  per  Road  Mile ^'^^^  i^TTl 

Total ^       1'814      •       $       1,699 

Cost  of  Repairs  and  Fuel,  1,000  G.  T.  M «         .264  $         .420 

Increased  Cost  of  Repairs  and  Fuel  on  1,000  G.  T.  M.  basis  of  mountainous 

,      ,          .  $   631,640 

over  level  country 

Percent  Increase  per  1,000  G.T.M 70.1% 

Cost  per  Road  Mile  at  Traffic  Density  of  Level  Country »       ^'»»'^ 

SI  190 
Increased  Cost  per  Road  Mile -  *  ' 

If  business  were  increased  70.1%  on  the  mountainous  country,  so  that  the 

Density  of  Traffic  should  be  as  great  as  on  the  level  country,  the  increased 

cost  for  Locomotive  Repairs  and  Fuel  would  be  1,190  X  1,000,  or $1,190,000 

The  expenditure  for  Maintenance  of  Equipment  on  the  Burlington  in  1910  amounted  to  $1,609 
per  mile  of  road  as  compared  with  $921  in  1902;  however,  in  the  meantime  the  tonnage  handled  per  mile 
of  track  nearly  doubled.  During  the  same  period,  the  weight  of  locomotives  increased  40%  and  the  average 
capacity  of  freight  cars  increased  from  24.7  tons  to  33.6  tons  or  36%. 

The  great  extremes  that  exist  in  Maintenance  of  Equipment  expenditures  (and  undoubtedly  each 
is  justified  in  the  expenditure)  are  shown  on  the  Minneapolis  &  St.  Louis  with  a  ten  year  average  of  $5(K) 
per  mile  of  road  as  compared  with  the  Philadelphia  &  Reading,  which  expended  $5,932  per  mile  during 
the  same  period  To  look  at  these  figures  alone  one  would  say  that  the  Philadelphia  &  Reading  spent 
twelve  times  as  much  money  annually  as  was  necessary  for  Maintenance  of  Equipment,  which  inference 

is  of  course  absurd.  ,  r^     .  ^        . 

Again  the  nature  and  character  of  traffic  has  much  to  do  with  Maintenance  of  Eqmpment  costs. 
The  Burlington,  for  example,  has  its  so  called  ''stock  rush"  where  a  great  volume  of  stock  must  be  trans- 
ported at  high  speed.  Many  times  consignments  of  20  or  25  cars  are  received  that  cannot  wait  for  other 
cars  to  make  a  full  train.  This  results  in  high  costs.  On  the  other  hand  al3out  two-thirds  of  the  tonnage 
of  the  Lackawanna  is  made  up  from  products  of  mines  which  can  be  hauled  in  large  capacity  cars  at  low 

speeds,  resulting  in  remarkably  low  costs.  j    ,    r  *i    •    i     • 

The  Southern  Pacific  presents  another  example  of  the  same  nature.  A  great  deal  of  their  business 
consists  of  fruit  from  Southern  Cahfornia  which  must  be  handled  when  the  consignments  are  iced  and 
ready  to  go  and  must  run  at  high  speed.  This  causes  a  heavy  traffic  east  bound  with  a  corresponding  light 
movement  west.  The  Great  Northern,  however,  has  a  steady  slow  freight  business,  carrying  wheat  west 
bound  and  lumber  east  bound,  thereby  being  able  to  make  a  much  better  showing  than  the  Southern  Pacific 
in  equipment  maintenance  costs.  •       m- 

It  is  therefore  evident  that  the  employment  of  the  unit  ''per  mile  of  road  for  comparing  Main- 
tenance of  Equipment  performance  without  special  reference  to  operating  conditions,  and  character  and 

volume  of  business,  is  meaningless  and  of  doubtful  value. 

IS 


The  same  thing  may  be  said  of  the  comparison  of  total  Maintenance  of  Equipment  per  locomotive 
mile,  inasmuch  as  increased  tonnage  per  engine  mile  may  decrease  the  cost  of  operation  per  ton  mile  but 
will  increase  the  maintenance  cost  per  locomotive  mile  so  that  each  of  the  several  divisions  must  be  subjected 

to  a  separate  analysis. 

The  gross  tons  hauled  one  mile  is  a  fair  and  equable  unit  to  use  as  a  basis  in  computing  maintenance 
costs.  Although  the  gross  ton  mile  is  made  use  of  on  some  railroads,  the  published  statements  and  the 
Interstate  Commerce  Commission  reports  never  show  this  very  important  figure,  nor  do  railroads  generally 
use  it  for  a  basis  of  computation.  The  figure  used  is  the  revenue  ton  mile,  which  may  be  the  all  important 
figure  when  considered  financially,  but  it  is  not  the  basis  which  should  be  used  when  considering  main- 
tenance costs. 

Many  roads,  necessarily,  haul  company  material  long  distances.  Locomotive  fuel,  for  example 
on  the  Southern  Pacific,  amounts  to  8,000  net  tons  per  day  and  is  carried  in  many  instances  300  or  400 
miles  with  a  corresponding  empty  car  mileage  back.  The  Pennsylvania  mines  its  coal  on  the  Une  of  road 
and  hauls  it  but  a  few  miles.  Iron  products  of  all  kinds,  rails,  boiler  steel,  car  wheels,  axles,  shop  machinerj- 
and  tools  all  go  to  make  a  heavy  tonnage  for  long  distances  on  western  roads  which  constitute  non-revenue 
freight  and  consequently  do  not  appear  to  the  credit  of  locomotives  which  do  the  work  of  hauling.  It  is 
thus  manifestly  unfair  to  compare  maintenance  costs  of  western  roads  with  eastern  roads  on  a  revenue 
ton  mile  basis,  but  it  would  be  more  nearly  so  if  the  gross  ton  miles  were  used. 

Another  common  and  equally  misleading  method  of  comparing  maintenance  costs  is  the  employment 
of  the  locomotive,  the  freight  car  or  the  passenger  car  as  a  unit  for  the  maintenance  costs  for  locomotives, 
freight  cars  and  passenger  cars  respectively. 

That  comparisons  of  this  nature  are  erroneous  is  emphasized  by  the  record  of  locomotive  mainten- 
ance on  the  Atchison  where  the  cost  per  locomotive  was  48%  higher  in  1910  than  in  1901,  which  would 
indicate,  if  the  locomotive  is  the  proper  unit,  that  repairs  had  increased  at  an  enormous  and  extravagant 

rate. 

However,  the  average  weight  increased  37%,  the  tractive  force  increased  41%  per  locomotive,  and 
in  the  meantime,  maintenance  cost  per  ton  of  tractive  force  decreased  4%.  A  still  greater  decrease  is 
noted  if  we  use  the  "tractive  mile"  or  "work  unit"  as  a  basis.  An  explanation  and  detailed  examples  of 
this  unit  will  be  given  in  a  following  chapter.  This  plainly  indicates  that  the  locomotive  maintenance  costs 
per  locomotive  should  have  but  little  weight  in  a  comparative  analysis  of  locomotive  costs. 

An  example  of  freight  car  maintenance  costs  is  found  on  the  Burlington  where  the  repair  expense 
increased  from  $58  per  car  in  1901  to  $98  per  car  in  1910.  During  this  period  the  average  capacity  increased 
from  24 . 7  tons  to  33 . 6  tons.  The  maintenance  per  car  mile  increased  37%,  but  the  maintenance  per  revenue 
ton  mile  increased  only  4%  plainly  indicating  the  unfairness  of  using  the  costs  per  car  as  a  basis  for  com- 
parisons. 

A  thorough  discussion  of  maintenance  costs  and  detailed  examples  from  representative  railroads 

will  be  given  in  the  next  chapter. 


19 


Maintenance  of  Way  and  Structures. 


^ 


CHAPTER  III. 
The  major  portion  of  any  railway's  initial  cost  and  capitalization  is  represented  in  the  road,  and  not 
in  the  rolling  equipment.  The  road,  moreover,  represents  approximately  as  large  an  annual  expenditure 
for  maintenance  as  does  the  rolling  equipment;  and,  though  it  does  not  appear  in  the  account^s,  an  even 
larger  sum  for  depreciation.  Not  only  this,  but  the  continual  improvements  in  transportation  methods 
and  standards  entail  the  sinking  of  larger  capital  sums  annually  in  betterments  than  is  the  case  ^nth  the 

equipment. 

No  one  department  of  a  railway's  operation  has  such  a  potent  effect  upon  the  w^hole  character  and 
results  of  that  operation  as  the  department  having  jurisdiction  over  maintenance  of  way  and  structures, 
including  therein  those  activities  of  the  railway  charged  with  the  physical  betterment  of  the  way,  and  with 
the  provision  of  additional  facilities.  The  train  load  is  more  a  function  of  the  grade  than  of  the  size  of  loco- 
motives. Grade,  therefore,  is  the  principal  cause  affecting  cost  of  transportation,  and  grade  is  dependent 
largely  upon  topography.  Topography  also  determines  the  cost  of  way  so  far  as  it  relates  to  engineering, 
but  not  so  far  as  it  relates  to  ground  values.  Tunnels,  bridges  and  terminals  involve  capital  expenditures, 
running  into  the  millions  per  mile,  and  very  large  traffic  results  must  accrue  to  warrant  any  considerable 
expenditures  for  this  kind  of  mileage. 

Curvature,  also  determined  by  topography,  is  an  obstruction  to  fast  and  economical  op<Tation, 
similar  to,  but  not  so  large  as,  that  of  grade.  Outside  clearances  (determined  by  tunnel  sections,  overhead 
bridges,  and  by  projections  into  the  right-of-way  area)  have  also  a  profound  effect  upon  the  cost  of  trans- 
portation, as  they  determine  locomotive  and  car  capacities.  Span  and  strength  of  bridges  and  culverts, 
solidity  of  fills,  ballast  and  track,  also  affect  transportation  capacity,  placing  limit  on  axle  loads,  total  loco- 
motive weights,  and  speeds. 

To  illustrate  in  turn  each  of  these  respects  in  which  the  physical  character  of  the  road  is  reflectwl 
in  net  earning  power,  a  few  cases  are  cited: 

Grade. 

It  needs  no  demonstration  to  show  that  the  locomotive,  and  train  crew,  will  handle  a  larger  train 
upon  a  level  road  than  upon  a  hilly  or  mountainous  one,  that  the  train  will  run  faster,  that  less  fuel  will 
be  burned,  that  the  wear  and  tear  on  the  locomotive  and  cars  (brakes,  wheels,  etc.)  will  be  less. 

Stated  in  another  way,  to  attain  the  same  train  load  or  speed  upon  the  road  with  a  hea\y  grade  as 
upon  the  level,  a  larger  and  more  costly  locomotive,  burning  more  fuel,  must  be  used,  and  the  draft  gear 
and  cars  otherwise  strengthened  to  withstand  the  greater  shocks.  The  net  result  in  either  case  is  increa.sed 
transportation  cost  due  to  grade. 

Curvature. 

Every  railroad  man  knows  that  a  curve  can  be  designed  for  one  speed  of  train  only,  and  that  it  either 
has  too  great  or  too  little  elevation  of  the  outer  rail  for  speeds  less  or  greater  than  that  for  which  it  was 

designed. 

This  restriction  on  speed,  and  also  the  greater  train  resistance  due  to  curvature,  increase  the  motive 
power  and  the  time  necessary  to  move  a  train  over  a  given  mileage. 

Closely  connected  with  the  problem  of  curvature  is  that  of  alignment.     A  short,  direct,  straight  and 

level  line  will  permit  of  a  denser  and  more  economical  traffic  movement  than  a  longer  tortuous  route.     But 

with  the  given  probable  increase  in  traffic  requirements,  there  is  a  definite  point  where  the  relocation  of  a 

road,  to  avoid  curves  and  grades,  will  not  pay.     An  example  of  such  a  condition  is  found  in  the  case  of  the 

Lucin  cut-off  across  Salt  Lake. 

21 


Clearances. 

The  width,  height,  and  length  of  a  car  depend  upon  the  clearance  of  the  road.  If  we  contrast 
the  load  clearances  usually  found  in  the  United  States  with  those  obtaining  in  England,  we  find  that  where 
American  widths  run  fronn  10  to  12  feet,  the  English  maximum  is  about  9;  where  American  heights  are  from 
15  to  18  feet  above  the  rail,  the  English  maximum  is  between  12  and  13,  leaving  |>ossible  load  areas  alx)vc 
the  platform  of  the  cars  of  approximately  60  to  70  square  feet  in  British  practice  as  compared  with  110  to 
150  square  feet  in  American  practice,  giving  about  100  per  cent  more  load  per  foot  of  length  of  car  on  Ameri- 
can roads  than  on  British.  Thus  it  is  that  the  British  "goods  wagons"  have  a  capacity  averaging  barely 
one-fourth  the  capacity  of  the  American  eight-wheeled  freight  cars,  a  restriction  in  carrying  capacity  per 
unit  length  of  train,  imposed  chiefly  by  the  much  smaller  clearances  obtaining  abroad.  In  this  respect, 
Western  roads  in  the  United  States,  roads  generally  in  new  countries,  and  roads  particularly  in  flat  plains 
regions,  have  a  great  advantage  over  roads  in  older,  more  settled  or  more  mountainous  regions. 

Any  attempt  to  increase  the  clearance  through  a  settled  community  or  over  a  mountainous  line, 
tends  to  become  prohibitive  in  expense  and  almost  insurmountable  in  physical  and  legal  obstacles. 

Bridges  and  Track. 

Bridges  are  designed  for  a  maximum  load  and  speed  factor;  loads  and  speeds  above  those  used  in 
the  factor  of  design  produce  stresses  in  the  structure  exceeding  safe  working  limits,  and  insofar  as  the  bridges 
cannot  be  strengthened  to  support  a  heavier  load  or  higher  speed  than  that  for  which  they  were  designed, 
act  as  a  hindrance  to  the  movement  of  traffic  by  economical  train  loads  and  speeds.  Not  long  ago,  40,000 
pounds  was  the  unit  locomotive-axle  load  used  in  Cooper's  formula.  Driving-wheel  axle  loads  exceeding 
50,000  pounds  are  usual  current  practice  now,  and  loads  between  60,000  and  70,000  pounds  are  not  uncom- 
mon. It  is  obvious  that  a  line  built  or  rebuilt  to-day  for  heavy  traffic  should  be  equipped  with  bridges 
and  culverts  capable  of  supporting  an  axle  load  not  far  short  of  100,000  pounds,  if  future  needs,  within 
the  economical  life  of  the  structures,  are  to  be  provided  for. 

What  is  true  of  bridges  is  in  large  measure  equally  true  of  track  from  the  ball  of  the  rail  to  the  road 
bed.  The  wearing  surface  of  the  rail  must  possess  sufficient  hardness  to  avoid  metal  flow  under  the  greatest 
wheel  pressures;  to  wear  such  a  length  of  time  under  dense  traffic  as  not  to  make  frequency  of  renewals  an 
uneconomical  burden  on  operation.  The  rails  must  be  so  stiff  as  not  to  fail  under  the  greatest  shocks, 
both  vertical  and  side,  experienced  in  practice,  and  must  be  so  supported  at  sufficiently  frequent  intervals 
as  not  to  bend,  and  upon  a  sufficient  area  of  sleepers  and  ballast  to  eliminate  the  tendency  to  crushing  or 
settling. 

Without  at  this  time  going  into  such  details  as  kinds  of  joints,  rail  fastenings,  character  of  ballast, 
types  of  bridges,  etc.,  that  are  desirable  under  modem  operating  tendencies,  it  is  evident  from  the  foregoing 
that  the  engineering  practice  of  a  railway  is  of  the  greatest  importance  in  its  influence  upon  the  whole  econ- 
omy of  operation,  and  in  the  end,  upon  financial  return. 

Thus  it  is  that  the  men  possessing  the  most  extended  and  highest  technical  training  are  found  in  the 
engineering  departments  of  American  railroads,  whereas  men  who  have  achieved  eminence  in  mechanical 
and  transportation  departments  are  quite  usually  practical  men  who  have  risen  from  the  ranks  and  whose 
school  has  been  that  of  experience. 

Although  the  prime  importance  of  the  relation  of  engineering  problems  to  profitable  railway  location 
and  operation  is  well  recognized,  the  actual  cost  of  maintenance  of  way  and  structures  does  not  vary  with 
the  traffic,  or  does  not  bear  nearly  so  constant  a  ratio  to  traffic  density  as  is  the  case  with  maintenance  of 
equipment  and  transportation  expenses.  In  fact,  maintenance  of  way  expenses  increase  with  increase  in 
traffic  in  less  proportion  than  do  even  the  fixed  charges.  This  statement  is  of  course  a  generalization  and 
specific  exceptions  will  be  found. 

When  it  comes  to  determining  the  character  of  the  way  and  structures,  the  financial  problem  is  a 
nice  one.  The  adaptation  of  facilities  for  the  economical  handling  of  traffic  must  be  balanced  against  the 
necessity  of  holding  the  investment  within  such  a  limit  as  to  obtain  the  maximum  safe  (as  well  as  economical) 
use  of  the  facilities  afforded.  Some  examples  may  illustrate  more  clearly  than  extended  demonstration  the 
purport  of  this  proposition. 

It  was  desired  by  a  capitalist  to  tap  certain  holdings  in  West  Virginia  coal  lines  by  a  railroad  direct 


h\ 


^o  tide-water.  The  capitalist  was  not  a  railroad  man,  although  eminently  successful  in  a  financial  way. 
and  in  building  a  railway  to  his  order  he  desired  to  get  the  best  that  money  could  buy.  As  an  engineering 
proposition,  the  railway  was  very  neatly  worked  out.  Ruling  grades  of  0.2  per  cent  against  eastward  coal- 
loaded  traffic  and  0.3  per  cent  against  westward  returning  empties,  were  established.  Large-radius  curves 
were  used.  The  general  character  of  construction  was  such  that  traffic  of  a  hundred  trains  a  day,  each 
bearing  6,600  tons  of  coal  behind  a  locomotive,  could  be  carried.  This  entailed  a  construction  cost  of  over 
$185,000  per  mile.     , 

As  the  United  States'  total  average  daily  production  of  coal  is  only  double  the  capacity  for  which 
this  railway  was  built,  it  is  evident  that  the  investment  in  the  character  of  construction  of  this  railway 
was  out  of  all  proportion  to  the  traffic  it  was  desired  to  tap.  This  railway,  like  the  steamship  "Great 
Eastern,"  was  built  at  least  a  generation  ahead  of  time,  and  even  if  the  unthinkable  happeas  and  the  roati 
ever  does  haul  the  amount  of  tonnage  for  which  it  was  designed,  the  entire  character  of  the  construction 
now  existing  will  have  been  swept  away  by  obsolescence  as  well  as  by  wear,  and  a  new  character  of  con- 
struction and  equipment  of  much  higher  and  more  capacious  type  will  perforce  have  had  to  take  its  place. 
This  example  typifies  the  extreme  of  expensive  foresight. 

It  is  a  curious  side-light  on  the  lack  of  foresight  sometimes  exhibited  in  important  details  of  the 
most  far-sighted  schemes,  that  ordinary  consolidation  engines  (or  rather  Mikado)  were  decided  upon  for 
motive  power,  although  with  the  large-radius  curves  employed  there  was  no  reason  why  a  decapod  or  even 
a  rigid  wheel-base  type  with  six  pairs  of  drivers  should  not  have  been  employed,  even  if  the  recently  intro- 
duced articulated  engines  were  considered  as  in  too  experimental  a  stage  to  warrant  their  adoption  as  stand- 
ard. It  must,  however,  be  stated  in  justice  to  the  supervising  motive-power  officer,  that  the  Mikado  instead 
of  an  articulated  type  was  at  first  adopted  against  his  protest  and  that  recent  orders  for  locomotives  for 
this  railway  have  been  for  the  2-6-6-2  type  of  articulated  compound. 

Had  an  articulated  locomotive  of  this  type  been  adopted,  or  locomotive  with  six  pairs  of  drivers 
and  a  rigid  wheel  base,  or  even  a  decapod  with  somewhat  heavier  axle-loading  than  was  the  case  with  the 
Mikado  engine,  the  ruling  grade  might  have  been  50  per  cent  greater  than  it  was,  without  an  increase  in 
operating  cost  per  ton  mile  nearly  as  great  as  the  additional  fixed  charges  necessary  to  estabhsh  the  lower 
ruling  grade  that  was  actually  adopted.  And  had  the  imagination  of  the  constructors  contemplated  the 
introduction  of  a  0-10-10-0  or  2-10-10-2  type  of  locomotive  with  an  axle-loading  of  70,000  pounds— an 
entirely  feasible  type  under  modern  engineering  practice— a  tractive  force  per  locomotive  unit  of  over 
three  times  that  obtaining  in  the  Mikado  engine  would  have  been  available,  with  the  result  of  permitting 
economical  operation  over  ruling  grades  of  0.6  percent  east-bound  and  0.9  west-bound.  Taking  into  account . 
however,  the  somewhat  increased  fuel  and  repair  charges,  and  the  diminished  speed  of  traffic,  grades  of 
about  0.5  percent  and  0.7  percent  would  probably  have  been  most  economical,  considering  the  relation  of 
operating  costs  and  fixed  charges. 

Since  this  was  an  entirely  new  road,  handling  one  commodity,  coal,  and  with  its  own  and  new 
equipment,  there  is  no  reason  why  the  clearance  should  not  have  permitted  the  use  of  cars  14  feet  wide  by 
20  or  more  feet  high  above  the  rail,  giving  a  load  cross-section  of  over  200  square  feet.  A  60-foot-over- 
couplers  coal  car  of  this  cross-section,  equipped  with  six-wheel  trucks,  would  have  a  coal  capacity  of  over 
100  tons;  equipment  of  this  kind  would  materially  reduce  the  train  length,  train  resistance,  and  the  pro- 
portion of  dead  weight  to  live  load,  and  reduce  also  yard  and  terminal  detention  of  all  kinds. 

The  use  of  this  equipment  on  the  line  of  this  railway  alone  would  not  have  prevented  the  use  of  the 
usual  smaller  equipment  for  interchange  traffic. 

The  ca.se  of  the  Virginian  railway  has  been  gone  into  at  length  because  it  is  so  recent  and  conspicuous 
an  example  of  the  failure  to  provide  for  a  given  traffic  at  a  practicable  minimum  total  of  operating  and 
fixed  charges.  There  is  no  question  but  that  the  operating  ratio  of  the  road  will  be  very  low  indeed,  but 
there  are  cases  where  it  is  not  to  the  stockholders'  interest  to  purchase  a  decreased  operating  cost  with 

too  large  a  bond  issue. 

In  contrast  with  the  case  of  the  Virginian  Railway  in  the  East,  may  be  taken  that  of  the  Missouri 
Pacific  in  the  West.  The  Missouri  Pacific  extends  to  the  Mississippi  and  has  a  large  tributar>'  mileage 
in  Kansas,  running  up  against  the  Rocky  Mountains  at  Pueblo.     The  Buriington  has  its  tributary  mileage 

23 


further  north  in  Nebraska,  with  its  through  line  to  Denver.  The  Atchison,  while  possessing  a  Chicago 
connection,  has  also  a  large  tributary  mileage  in  Fkstern  Kansas,  and  reaches  the  mountains  just  the  other 
side  of  La  Junta,  Colorado. 

An  examination  of  the  i)rofiles  will  show  that  the  ruling  grades  on  both  the  Burlington  and  the  Atchi- 
son are  lower  than  those  of  the  Missouri  Pacific.  This  failure  of  the  financial  management  of  the  Missouri 
Pacific  to  effect  a  grade  revision  similar  to  that  so  successfully  carried  on  during  the  past  ten  years  by  its 
competitors,  coupled  with  the  notoriously  poor  maintenance  of  the  road  bed  of  this  system,  has  no  doubt 
had  much  to  do  with  the  coincident  failure  of  these  lines  to  estabUsh  a  large  and  growing  profitable  traffic, 
as  has  been  the  case  with  its  neighbors. 

It  has  already  been  pointed  out  that  tunnels,  bridges,  and  terminals  constitute  very  expensive  mileage 
with  which  to  secure  traffic,  and  that  traffic  must  indeed  be  very  great  to  warrant  large  investment  therein. 
This  is  the  prime  difficulty  confronting  the  so-called  Moffat  road.  In  order  to  complete  a  line  from  Denver 
to  Salt  Lake  that  will  furnish  a  competitive  grade  to  existing  lines,  some  $40,000,000  must  be  literally  sunk 
in  what  would  be  the  longest  tunnel  in  America,  an  investment  which  financiers  controlling  such  sums 
are  correct  in  believing  unwarrantable  from  the  share  of  trans-Rocky  Mountain  traffic  this  line  would  be 
likely  to  secure. 

It  would  manifestly  not  be  a  justifiable  investment  for  existing  roads  to  buy  out  and  complete  the 
D.  N.  W.  &  P.,  thus  spending  a  great  deal  of  money  in  order  to  have  a  line  competitive  with  their  existing 
investment.  This  fundamental  economic  condition  is  responsible  for  the  proposition  that  the  state  of 
Colorado  shall  complete  this  enterprise.  Individuals  are  ever  ready  to  permit  governments.  State,  muni- 
cipal and  national,  to  take  over  unprofitable  enterprises — one  of  the  most  potent  causes  for  government 
management  of  European  roads. 

An  enterprise  similar  to  the  D.  N.  W.  &  P.  is  found  in  the  Florida  East  Coast.  In  order  to  shorten, 
by  an  unimportant  few  miles,  the  water  distance  between  the  North  American  continent  and  the  island 
of  Cuba,  this  railroad  is  bridging  at  an  immense  cost  the  Florida  keys  to  Key  West.  As  with  the  present 
state  of  the  transportation  art,  train  ferriage  across  these  straits,  a  matter  of  a  hundred  miles,  is  neither 
practical  nor  economical,  the  yield  on  the  investment  in  this  piece  of  mileage  would  seem  to  approach  the 
vanishing  point. 

Turning  our  attention  from  unprofitable  tunnel  and  bridge  schemes  to  equally  questionable  terminal 
extensions,  the  cases  of  the  Wabash  and  Pennsylvania  may  be  examined.  The  Wabash,  desiring  to  tap 
the  profitable  Pittsburg  tonnage  in  competition  with  the  existing  Pennsylvania  facilities,  built  the  Wabash 
Pittsburg  Terminal  Railway  at  a  cost  of  nearly  $1,000,000  per  mile. 

In  this  case,  the  Wabash  earnings  would  have  had  to  be  augmented  by  some  $10,000,000  gross  per 
year  from  Pittsburg  alone,  not  otherwise  securable,  to  warrant  the  investment.  As  is  well  known,  this 
result   did   not  take  place. 

The  New  York  Central  secured  its  entrance  to  the  very  heart  of  Manhattan  Island  by  a  tunnel  in 
which  the  running  of  steam  locomotives  was  an  intolerable  operating  condition.  Probably  it  would  have 
been  a  wise  plan  for  the  New  York  Central  and  the  New  Haven  to  establish  a  great  freight  and  passenger 
terminal  in  the  Bronx,  and  to  turn  the  Park  Avenue  tunnel  into  an  electric  subway  to  be  operated  pre- 
ferably in  conjunction  with  the  existing  subway  lines.  Passengers  arriving  at  the  Grand  Central  Terminal 
must  in  any  case  be  conveyed  to  some  other  portion  of  the  city,  and  it  would  have  probably  been  both 
cheaper  and  more  convenient  from  an  operating  point  of  view,  and  in  the  view  of  pubUc  service,  for  the 
New  York  Central  to  have  made  this  kind  of  an  arrangement  and  to  have  purchased  control  of  the  Inter- 
borough  System  (subway  and  elevated)  than  for  it  to  go  to  the  far  greater  expense  of  attempting  to  run 
its  solid  passenger  trains  into  the  heart  of  the  city.  Used  as  a  subway,  the  Park  Avenue  tunnel  would 
have  not  only  cost  less  to  equip  for  electric  operation  than  the  present  installation,  but  would  have  yielded 
a  very  considerable  capacity  from  the  operation  of  local  tracks. 

If  in  the  case  of  the  New  York  Central  it  was  an  expensive  financial  policy  to  reconstruct  existing 
terminal  facilities  as  has  been  done,  what  can  be  said  of  the  Pennsylvania,  which  apparently  borrowed 
trouble  by  extending  its  main  line  also  into  the  heart  of  New  York  City?  The  Hudson  rapid-transit  tunnel 
system  is  to-day  a  more  convenient  means  of  gathering  and  distributing  the  Pennsylvania's  passengers 

24 


1 

/ 


than  is  the  magnificent  terminal  erected  at  32nd  Street.  And  if  it  be  contested  that  the  Pennsylvania's 
tunnel  across  Manhattan  Island  was  justifiable  as  a  far-sighted  scheme  to  make  Montauk  Harbor,  at  the 
eastern  end  of  Long  Island,  a  Trans-Atlantic  port,  this  still  does  not  justify  the  elaborate  and  costly  terminal 
station  provided  at  32nd  Street. 

In  fact,  the  Pennsylvania  should  have  co-operated  with  the  existing  Hudson  Tunnel  Company, 
probably  securing  control  of  it,  with  the  view  of  using  that  system  as  a  passenger  feeder  and  distributor 
for  its  steam  terminal  in  New  Jersey,  eventually  adding  a  large-dimensioned  through  tunnel  to  the  smaller 
local  traffic  tunnels  in  case  the  Montauk  Harbor  plan  came  into  actual  being. 

It  is  inconceivable  that  the  additional  traffic  secured  to  the  Pennsylvania  by  tapping  the  borough 
of  Manhattan  will  yield  a  proper  return  upon  the  miUions  invested. 

Had  the  Pennsylvania  adopted  a  less  grandiose  but  more  practical  poUcy  of  making  some  such 
arrangement,  as  suggested,  with  the  Hudson  Tunnel  Company,  it  would  have  probably  had  enough  free 
cash  to  spare,  as  compared  with  the  existing  investment,  to  have  secured  control  of  the  entire  rapid-transit 
facilities  of  New  York  City;  or  it  could  have  purchased  what  would  amount  to  a  controlling  interest  in 
such  profitable  earnings  as  well  as  traffic  connections  as  the  Illinois  Central,  Northwestern,  Atchison,  or 
St.  Paul.  What  a  magnificent  and  far-sighted  as  well  as  profitable  extension  this  would  have  been,  com- 
pared with  the  erection  of  the  architecturally  beautiful  but  financially  unprofitable  monument  on  Seventh 
Avenue.     The  policy  pursued  was  indeed  spectacular,  but  it  was  not  railroading. 

It  begins  to  look  as  if,  egged  on  by  the  prodigal  example  of  this  passenger  terminal  investment  in 
New  York  City,  an  attempt  was  going  to  be  made  to  force  the  railroads  running  into  Chicago  to  electrify. 
Economically  and  as  a  piece  of  practical  railroading,  there  is  not  a  particle  of  justification  for  such  a  step; 
and  it  is  probable  that  the  abolition  of  coal  from  Chicago  would  materially  check  its  growth  and  divert 
continental  traffic  interchange  in  large  part  to  other  centers,  thus  having  a  boomerang  effect  upon  the 
citizens  of  Chicago.  The  abolition  of  coal  shipment  from  Chicago  would  very  largely  increase  the  cost  of 
power  there  and  tend  to  drive  manufacturers  away. 

Certain  it  is  that  by  no  stretch  of  the  imagination  could  any  additional  income  worthy  of  the  name 
be  secured,  consequent  upon  the  half-billion  dollars  needed  to  effect  complete  electrification  of  all  terminals. 
It  is  to  be  hoped  that  the  legal  obstacles  will  prevent  the  commission  of  any  such  national  extravagance. 

So  far  we  have  considered  certain  striking  examples  of  railway  construction  relative  to  grade  and 
terminals.     We  have  yet  to  consider  the  effect  of  clearance,  track,  and  bridges  upon  economical  operation. 

A  few  months  prior  to  his  death,  Mr.  Harriman  gave  an  interview  to  the  effect  that  he  believed 
that  a  six-foot  gauge  would  be  the  next  big  development  in  raih-oading.  No  financier  has  been  a  more 
astute  and  thorough  student  of  actual  railroad  operating  conditions  and  economies  than  Mr.  Harriman. 
Nevertheless  this  broad-gauge  proposition,  although  sound  in  an  engineering  sense,  would  not  be  sound 
financially.  It  would  cost  too  much  to  make  the  change,  and  the  losses  from  having  to  transship  between 
the  standard  and  broad-gauge  fines  would  much  more  than  offset  any  operating  economy  due  to  the  more 
massive  locomotives  and  immense  train  loads  securable  by  broadened  gauge.  The  broad  gauge,  even  if 
practicable  in  a  financial  sense,  would  as  a  matter  of  expendiency  be  constructed  first  along  the  condensed 
traffic  lines  so  as  to  secure  the  earliest  return  upon  the  investment.  Investment  would  of  course  be  greater 
in  reconstruction  through  a  well  settled  and  built-up  region.  It  is  safe  to  say  that  electrification,  also  a 
dense  traffic  development,  will  precede  as  a  proposition  of  financial  return  in  the  broadening  of  the  gauge; 
and  with  the  advent  of  trunk-line  electrification  and  its  possibility  of  multiple-unit  train  control,  the  necessity 
for  a  broad  gauge  in  order  to  increase  unit  train  loads  will  have  been  eclipsed. 

As  has  been  pointed  out  in  discussing  the  Virginian  Railway  case,  vast  increases  in  unit  train  loads 
are  at  present  possible  with  steam  locomotive  power,  having  been  made  so  by  the  advent  in  American 
railroading  practice  of  Mallet  coi.  pound  articulated  locomotives.  To-day  the  customary  heaviest  freight 
and  passenger  locomotives  are  resi  ectively  of  the  consolidation  and  Pacific  types.  Yet  articulated  locomo- 
tives have  been  built  for  each  of  these  services  of  practically  double  the  tractive  force  of  the  former  rigid- 
wheel-base  types.  Indeed,  some  freight  locomotives  of  the  2-10-10-2  type  have  actually  been  built,  and 
there  is  no  good  reason  to  suppose  that  an  articulated  locomotive  of  even  double  or  treble  this  immense 
size,  with  four  or  six  sets  of  drivers,  would  not  be  practicable  as  a  locomotive,  not  even  considering  such 

25 


/ 


increased  power  as  would  normally  follow  from  the  constantly  progressive  tendency  toward  increased  axle 
loads.  There  are,  however,  at  the  present  time  many  practical  operating  conditions  militating  against 
the  use  of  engines  much  larger  than  the  2-8-8-2  type  for  heavy  grade  through  traffic.  Principal  among 
these  limitations  is  that  of  the  capacity  of  draft  gear,  of  yards  and  sidings,  and  of  engine  terminals. 

With  the  successful  test,  however,  of  the  steam-electric  locomotive  recently  built  by  the  North 
British  Locomotive  Works,  it  would  seem  more  likely  that  a  mobile  powerhouse  strung  out  on  wheels  may 
eventually  be  the  intermediate  step  between  all-steam  and  all-electric  traction,  partaking  of  the  operating 
and   investment   cost   advantages   of   each   system. 

In  other  words,  it  looks  as  if  increase  in  train  length  rather  than  increase  in  train  section  (due  to 
broader  gauge),  will  continue  to  be  the  normal  development,  maintaining  a  proper  balance  between  reduc- 
tion in  operating  cost  and  increase  in  fixed  charges. 

No  chain  is  stronger  than  its  weakest  link.  Critical  links  in  a  railroad's  mileage  are  its  bridges. 
Great  solidity  of  construction  may  often  be  as  short-sighted  as  construction  of  too  flimsy  and  too  temporary 

a  nature. 

Early  construction  in  Europe  employed  masonry  bridges  and  viaducts  which  could  presumably 
withstand  the  ravages  of  time  and  use  for  centuries;  but  although  the  early  builders  thought  they  were 
building  for  the  future,  their  imaginations  were  not  equal  to  the  actual  development,  and  most  of  these 
structures  had  to  be  replaced  by  still  more  massive  types  in  order  to  support  the  heavier  motive  power  of 
modern  times.  At  the  present  time  it  is  found  to  be  impracticable  to  further  reduce  transportation  costs 
by  the  use  of  heavier  locomotives,  owing  to  the  prohibitive  investment  required  in  the  replacement  of  bridges, 
etc.;  as  the  money  to  amortize  the  structures  destroyed  in  most  cases  cannot  bo  found. 

In  contrast  to  European  practice  in  this  respect  was  that  of  the  roads  of  Western  America,  where 
wooden  trestles  and  steel  truss  bridges  were  the  rule,  involving  the  writing  off  of  but  a  small  amount  of  capi- 
tal value  when  grade  and  traffic  needs  required  replacement  by  more  substantial  structures. 

As  has  been  pointed  out,  there  is  little  reason  to  believe  that  we  have  reached  within  50  percent 
of  the  attainable  locomotive  and  axle  loads.  It  would  therefore  seem  an  imprudent  policy  to  design  roadway 
structures  for  a  useful  life  beyond  a  limit  that  would  be  set  by  progressive  intensity  of  traffic  requirements. 
The  Pennsylvania,  for  instance,  in  the  past  few  years  has  gone  in  for  concrete  and  stone  bridges.  Within 
fifteen  or  twenty  years,  these  will  presumably  be  unequal  in  capacity  to  the  traffic  requirements,  and  a 
smaller  investment  in  steel  structures  would  probably  be  the  wiser  policy.  To  build  too  substantially  and 
extensively  for  the  future,  whose  growth  cannot  be  accurately  reckoned,  is  to  sink  an  investment  and  to 
accrue  corresponding  interest  and  depreciation  charges  (compounded),  ultimately  greater  than  the  cost 
of  replacement  of  the  structure  at  a  date  prior  to  its  being  worn  out  by  use.  This  danger  of  mistakenly 
building  for  and  mortgaging  the  future  must  ever  be  guarded  against  in  the  acquisition  of  all  railroad 
property,  but  more  particularly  in  the  investment  of  roadway  and  structures  than  in  equipment. 

Track. 

In  one  essential  respect  does  railroad  traffic  differ  in  principle  from  other  road  traffic,  and  that  is 
in  the  use  of  a  special  track  instead  of  a  common  road.  This  distinction  places  the  railroad  train  more  in 
advance  of  the  road  tractor  as  an  economical  means  of  bulk  transportation,  than  the  tractor  is  with  respect 
to  animal  portage.  The  track  is  the  all-important  feature  that  makes  modern  railroading  the  factor  that 
it  is  in  civilization. 

Character  of  motive  power  and  type  of  vehicle  may  be  radically  changed  without  essentially  altering 
the  relation  of  the  railroad  to  the  community;  but  any  substitution  for  the  metal  rail  with  the  wheel  loads 
it  is  able  to  support  would  have  the  most  subversive  effects  upon  our  whole  transportation  system.  In 
no  respect,  therefore,  is  careful  attention  to  detail  and  adequate  planning  for  the  future  so  important  in 
railroading  as  in  matters  relating  to  track. 

As  a  general  rule  the  cost  of  securing  the  right-of-way  and  preparing  the  roadway  is  greatly  in  excess 
of  the  cost  of  the  track  and  ballast,  and  generally  it  is  wise,  after  having  invested  so  heavily  in  the  former, 
to  furnish  such  a  character  of  track  and  of  equipment  as  will  be  best  able  to  handle  a  large  traffic  most 

economically. 

26 


It  would  be  a  pity  for  a  man  who  had  bought  a  lot  in  a  fine  location  and  erected  thereon  a  fine  hou;:^ 
upon  a  massive  foundation,  not  to  provide  such  a  roof  as  to  render  the  house  habitable  and  thereforii  income 
producing. 

Similarly  it  is  a  pity  for  well  located  railroads  not  to  add  to  the  income  value  of  the  hundreds  oi 
millions  invested  therein  by  providing  a  machinery  of  transportation — track  and  equipment — of  the  most 
efficient  character. 

But  as  has  been  said  of  bridges,  of  grade  reduction,  and  other  expensive  elements  of  railroad  building, 
some  of  the  things  that  are  most  desirable  from  an  engineering  and  operating  point  of  view  are  not  justi- 
fiable in  an  earning  sense,  and  such  is  the  case  with  respect  to  rails  of  a  section  larger  than  the  traffic  re- 
quirements of  the  immediate  future,  of  the  use  of  alloy  rails  of  high  cost  per  ton,  and  of  proper  stone  ballasting. 

In  American  practice  to-day,  there  are  few  locations  outside  of  the  sharper  curves  in  dense  main- 
line traffic  lines,  where  alloy  rails  are  financially  justifiable.  On  the  other  hand,  there  are  many  portions 
of  main  line  where  the  rail  section  should  unquestionably  be  heavier  than  the  100  pounds  per  yard  now 
used.  Most  American  rails  are  far  too  light  for  the  traffic  imposed  upon  them,  this  being  as  much  responsible 
for  the  epidemic  of  rail  failures  as  is  the  process  of  manufacture.  In  other  words,  track  construction  in 
the  United  States  has  failed  to  keep  pace  with  locomotive  loads. 

But  as  to  the  economy  in  the  use  of  tie-plated,  hard-wood,  non-decaying  ties,  the  tie  plates  attached 
to  the  tie  by  bolts  or  screws,  there  can  be  no  question  whatever,  in  standard-gauge  railroad  practice.  The 
only  question  is  as  to  the  details  in  the  design  of  these  parts  and  fastenings.  The  saving  within  the  life  of 
the  tie  incident  to  the  use  of  such  a  construction,  would  more  than  pay  for  the  larger  investment  and  incident 
additional  charges  thereon.  An  incidental  advantage  to  such  a  construction  is  the  ease  and  low  cost  with 
which  rail  relaying  and  transfer  may  be  made,  thus  permitting  of  the  use,  for  a  shorter  term  of  years,  of 
lighter  section  than  would  be  indicated  as  economical,  when  taking  into  consideration  the  costs  of  relaying 
under  present  practice. 

Those  charged  with  the  supervision  of  the  locomotive  and  train  service  and  of  the  equipment  main- 
tenance are  brought  into  close  contact  with  grave  difficulties  in  the  labor  question,  difficulties  consequent 
upon  the  demands  and  threats  of  labor  organizers.  Those  charged  with  the  maintenance  of  way  are  also 
beset  with  a  labor  difficulty — not  one,  however,  of  organization,  but  of  reliability,  competence  and  skill. 
The  native  track  man  is  rarely  found  except  as  a  section  foreman,  and  this  notwithstanding  the  rise  of  25 
percent  in  trackmen's  wages  in  the  past  ten  years.  The  foreign  labor  element  securable  is  far  from  satis- 
factory, and  does  not  furnish  the  proper  human  material  from  which  the  section  foremen  of  the  future  must 
be  made.  A  regeneration  is  in  order,  and  it  would  seem  that  this  could  be  secured  only  by  the  application 
of  power-driven  machinery  to  track  work,  thus  exchanging,  in  the  character  of  the  laborers,  numbers  for 
skill,    intelligence,    rehability. 

The  mechanical  construction  and  upkeep  of  track  has  been  an  actual  and  practical  reality  for  at 
least  a  half-dozen  years,  and  it  now  looks  as  though  the  experimental  advances  that  have  taken  place  in 
various  parts  of  the  world  in  this  respect  in  recent  years  would  be  combined  into  a  progressive  forward 
movement  of  great  import,  both  in  the  reduction  of  railroad  construction  and  maintenance  costs,  and  in 
the  uniform  excellence  of  that  maintenance  and  construction. 

The  most  rapid  advances  that  have  been  made  in  these  respects  are  to  be  found  in  France,  and  upon 
certain  roads  in  the  western  States,  notably  the  St.  Paul,  the  Atchison,  and  the  Government  railroad  at 
Panama.     Track-laying  machines  should  be  in  still  more  general  use  in  America. 

In  conclusion,  both  a  statistical  and  practical  study  of  American  railroads  in  their  roadway  costs 
shows  the  following  conclusions: — 

The  principal  investment  in  a  railroad  is  in  its  roadway;  and  in  building,  rebuilding,  or  extending 
a  road  such  a  policy  should  be  adopted  as  will  balance  growing  traffic  capacity  and  lowered  operating  cost 
against  larger  fixed  and  deprcciatum  charges.  This  rule  applies  also  to  terminal  facilities  and  through 
traffic   links   involving   expensive   construction. 

Generally  speaking,  larger  motive  power  will  enable  traffic  to  move  more  cheaply,  considering  incre- 
ments to  fixed  charges,  than  the  same  total  operating  and  fixed  expenses  on  a  lower-grade  line  with  small 
motive  power;  conversely,  a  larger  fixed  charge  plus  operating  cost  will  usually  result  from  a  policy  of 
grade  reduction  than   from  motive-power  expansion. 

27 


For  the  support  of  constantly  increasing  axle  loads,  traffic  density  and  train  speeds,  track  of  very 
s\il)stantial  and  durable  character  must  take  the  place  of  that  now  existing. 

And  lastly,  the  further  substitution  of  machinery  for  hand  labor  must  take  place  in  construction 
and  maintenance  of  way,  as  a  similar  substitution  has  taken  and  is  taking  place  in  the  construction  and 
maintenance  of  motive  power  and  rolling  stock. 

/m:f/m6e  n/i/nTtm/rc^  or  mr/iND  st/^uctures 
ro  TomL  o/r/?/iT//r6  fx/^f/YJt  togethe/^  ^/th 

/fiCRf/fSE  OR  D^O?f/fSr  con  PARED  ^/TH  /90/. 


Percentage  ria/ntenance  of  h^ai/ and 
Sirucfures  to  loiaf  Operating 
Expense. 


/n  crease  or  decrease 
Comparec/  iv/t/?  /90A 


III 


The  above  diagram  illustrates  the  point  that  expenditures  for  maintenance  of  way  depend  more 
upon  financial  conditions  than  upon  actual  needs  of  the  property.     The  variations  are  seen  to  be  exceedingly 

wide. 

28 


MAINTENANCE.  OF  my  AND  3TRUCTUPE^ 
PER  LOCOMOTIVE  M\LE 

Eor  Fiscal  Years  1908-IW^  ANDHIO 


CenT3 


to 


z.o 


30 


/90S 

GNOf^    f909 
/9/0 

/90Q 
SOU.Rrj909 
1910 


Cents 


to 


zo 


30 


-40 


Financial  manuals  use  the  unit  "mile  of  road"  by  which  to  measure  earnings  and  expenses.  This 
unit,  unsatisfactory  enough  in  measuring  expenses  for  maintenance  of  way  and  structures,  is  still  less  satis- 
factory in  measuring  expenses  for  maintenance  of  equipment.  It  would,  in  fact,  be  more  logical  to  measure 
expenses  of  maintenance  of  way  and  structures  by  the  locomotive  mile  unit,  and  the  diagram  above  illus- 
trates such  comparison. 


29 


■MMiMI 


RELATION  or  TRAmC  TO  MAINTENANCE 
or  i^AfC05T5  ON  REPRESENTATIVE 
EASTERN  AND  WESTERN  ROADS -1 910 


CBCra 

£:ric 

LV 


VvVvvVVvv  V-.VX 


DOJLLAR5 


SCOC  TOHMiLCS 


OOLLJkRS 


^ 


2J 


COST  OF A«AINT£AIANCC  OF  ^AY AAfD  5T/?UCrUP£S 
P£R  AffLC  OF  ROAt^^ 

TRAFFIC  DENSITY 
(R£.V£.NUE  TON  MILES  f^ER  MILE  Of  ROAO) 

MAINTEHANCE  OF  ¥YAY  ANO  STRUCTURES 
RER  fOOO  REI/ENUC  TON  MILES. 


The  above  diagram  shows  definitely  the  difference  in  traffic  conditions  between  eastern  and  western 
railroads.  It  also  shows  that  comparisons  of  maintenance  costs  per  mile  of  road  which  do  not  take  into 
account  traffic  density  are  valueless,  although  this  is  a  unit  usually  employed  by  investors  and  railroad 
men  in  judging  as  to  upkeep  of  the  property.  It  also  is  shown  above  that  maintenance  does  not  vary  directly 
in  proportion  to  traffic  density,  although  it  might  seem  logical  to  suppose  that  would  be  the  case.  In  other 
words,  traffic  density  or  earnings  determine  the  amount  that  shall  be  spent  in  maintenance  of  way. 


30 


mt)t(ttm^- 


Railroad  Operating  Costs. 

CHAPTER  IV. 

MAINTENANCE  OF  EQUIPMENT. 

In  point  of  magnitude,  maintenance  of  equipment  ranks  second  among  the  items  entering  into 
operating  expense.  In  1901  it  ranked  third.  The  relative  proportion  of  the  main  divisions  of  expense 
averaged  for  the  large  railroads  in  the  years  1901  and  1910,  as  follows: 

1901  1910 

Maintenance  of  Way  &  Structures 22.3%  20.5% 

Maintenance  of  Equipment 18.6  23 . 2 

Conducting  Transportation 55.0  53.0 

General  Expense 4.1  3.3 

Of  all  the  main  divisions  of  expense  shown  above,  maintenance  of  equipment  is  the  only  one  which 
has  increased  in  ratio  to  total  operating  expense  during  the  ten  year  f)eriod  ending  with  1910.  This  increase 
is  very  marked  and  in  strong  contrast  to  corresponding  reduction  in  the  other  three  main  operating  divisions 
of  expense.  The  relative  proportion  of  the  four  divisions  of  expense  to  the  total  cost  of  operation  for  the 
period  between  1901  and  1910  is  shown  graphically  in  Fig.  1. 

Classification  of  Operating  Expenses  in  Percent  of  TotaL 

Maintenance  Maintenance  Conducting  General 

Year  of  Way  of  Equipment  Transportation  Expenses 

1901  22.27%  18.63%  54.98%  4.12% 

1902  22.26  19.13  54.67  3.95 

1903  21.19  19.13  55.89  3.79 

1904  19.52  19.97  56.67  3.84 

1905  19.78  20.76  55.48  3.96 

1906  20.29  21.39  54.43  3.86 

1907  19.66  21.06  55.54  3.73 

1908  19.73  22.06  54.89  3.32 

1909  19.29  22.75  53.98  3.98 
19101  20.50  23.20  53.00  3.30 

t  Large  Roads. 

The  steadily  increasing  cost  of  maintenance  of  equipment  during  the  past  decade,  as  reflected  by 
the  chart,  is  as  conspicuous  as  the  corresponding  reductions  in  the  other  three  items  of  operating  expense. 
The  component  charges  entering  into  maintenance  of  equipment,  such  as  labor,  material,  etc.,  are  also 
common  to  the  other  operating  items,  maintenance  of  way  and  conducting  transportation.  The  assertion 
therefore  that  higher  labor  and  material  costs  are  responsible  for  the  increasing  ratio  in  the  cost  of  main- 
tenance of  equipment  to  total  operating  expense  does  not  hold  when  the  same  test  is  apphed  to  conducting 
transportation  and  maintenance  of  way. 

That  a  definite  relation  exists  between  increasing  cost  of  maintenance  of  equipment  and  decrea.<ing 
transportation  charges  is  clearly  reflected  through  analysis  of  conditions.  Locomotives  and  cars  are  growing 
larger  in  capacity,  obviously  reducing  the  power  units  required  to  handle  a  given  amount  of  traffic.  It  is 
logical  to  assume  that  the  purpose  of  this  policy  was  directed  toward  reducing  cost  of  transportation,  lie- 
ports  reveal  the  truth  of  this  assumption  and  the  actual  fact  that  through  the  medium  of  larger  motive 
power  and  rolling  stock,  the  cost  of  transportation  has  been  greatly  reduced. 

Heavier  locomotives  and  larger  cars,  however,  are  more  expensive  to  maintain.  Repairs  to  loco- 
motives are  approximately  proportional  to  their  weight.  With  the  advent  of  heavier  power,  higher  main- 
tenance costs  are  expected,  not  only  per  locomotive  but  also  per  mile  run.    The  same  is  equally  true  of 

31 


mio5  or/iccoums  to  total  operatitig  aptr/^t^. 

//?  P^rceni  of  Total. 


% 


/90I 
J902 
/903 
t90^ 
/$06 
/906 
/907 

/908 
/909 

1^10 


taoi 

/992. 
/90Z 
30^ 
/905 
J906 
f907 

/Me 

/S09 
/9f0 


/90t 
/»Z 
1903 

/004 
/90J 

f006 

fsor 

/900 
/0C9 

/9/e 


/90f 
1902 
f903 
f0O4^ 

/90J 
/906 
f90? 

1906 
1909 
!9f0 


JO 


20 


40 


Conduct m^  Iransportatm 


tlainh  nance  ^A^y. 


naintenanoe  ofLouipment 


O en  era  I  txp^nses 


iO 


20 


so 


40 


Fig.  1. 


32 


50 


SO 


cars.     Thus  improved  transportation  efficiency  is  purchased  at  an  increased  cost  of  mechanical  department 
operation. 

The  ratio  of  maintenance  of  equipment  to  total  operating  expense  on  the  large  roads  for  the  past 

RRTio  OF  nftimnfMicLOF  PERCEHT  i/icRtflSE  oTm/fimrf/inct 

EOUIPnEflT  TO  TOmL  OF  FaUIPnFIIT  TO  TOT/iL  OFFR/Um 

OFFRf\Tinc  FXFt/rst.  fxpfhsf:  oi/r/^  r^/jRm/. 

/^vera^e  of  Large  Roach. 


'01      02     03      04     '05     06      07     '08      09      'fO 


02      '05      'Ot    -05     06      OF     OS    '0$     '/O 


Baft /more  6r  Ohh. 

■50 


01      '02    '03     04    '06    '06    '07    'GO  '09    '(0 


'02     '03     '04      05    '06    '0/     'Oa    '09     'W 


Pennsulyonia  R.R. 


•01     02     '05    '04    '05    '06    0?    '08     09     '10 


'03    'Of    'OS    '06     07    '06    '09    *>» 


f\tchi5on 


'01  '02    '05    '04    '05   06    'OP    06    '09    '/O 


'02    '03     '04    'OS    '06     '07    '06    '09    'fO 


<5outhcrn  Pacific  Co. 

■30 


'01     '02    '03    '04    'OS  'Ot>    '07    '08    'OO    'fO 


02    'as    '04    'OS  '06   '07     'oe    '09   '/o 


Fia.  2. 


ten  years  is  shown  in  accompanying  table  and  graphically  in  Fig.  2.  The  percent  increase  in  maintenance 
charges  to  the  total  compared  with  the  year  1901  are  also  included  A\ith  similar  information  for  four  repre- 
sentative roads. 

38 


Table  No.  2. 
Ratio  Maintenance  of  Equipment  to  Operating  Expense. 


Year 

Large  Roads 

Atchison 

Sou.  Pae. 

B.  &0. 

P.  R.  R 

1901 

18.6% 

21.3% 

18.2% 

19.7% 

23.6% 

1902 

19.1 

24.4 

19.3 

20.5 

23.4 

1903 

19.1 

22.8 

20.8 

21.5 

24.2 

1904 

20.0 

24.0 

21.9 

24.0 

23.7 

1905 

20.8 

24.6 

23.6 

24.3 

25.8 

1906 

21.4 

22.8 

23.8 

25.0 

26.0 

1907 

21.0 

21.3 

21.6 

24.2 

26.0 

1908 

22.1 

24.6 

20.6 

23.2 

26.1 

1909 

22.8 

25.2 

23.0 

22.3 

26.1 

1910 

23.2 

23.0 

22.7 

26.0 

26.0 

Crprcity  of  Freight  Cms. 


Bverage  Capcicity  in  Tons. 


Percent  Increase  Compared 
With  }90Z. 


Percent  Increase  in  Maintenance  of  Equipment  to  Operating  Expense 

Compared  with  the  Year  1901. 


Year 

Large  Roads 

Atchison 

Sou.  Pae. 

B.  &0. 

P.  R.  R 

1902 

2.7% 

14.5% 

6.6% 

0.4% 

00.0% 

1903 

2.7 

7.0 

14.9 

9.1 

.01 

1904 

7.5 

12.7 

21.0 

21.8 

.04 

1905 

11.6 

15.5 

30.4 

23.3 

9.5 

1906 

15.0 

7.0 

31.5 

27.0 

10.2 

1907 

12.9 

00.0 

30.4 

23.0 

10.2 

1908 

18.8 

11.7 

23.7 

17.7 

10.6 

1909 

22.6 

18.2 

39.2 

13.2 

10.6 

1910 

24.7 

8.0 

25.4 

37.0 

10.2 

In  1901  equipment  on  tlie  large  roads  was  maintained  for  18.6  percent  of  total  operating  expense. 
During  the  following  decade  the  percentage  increased  steadily,  reaching  23.2  percent  in  1910,  an  increase 
of  nearly  25  percent  over  the  figure  in  1901.  The  same  conditions  in  varying  degree  are  reflected  in  the 
records  of  the  representative  railroads  shown.  The  Southern  Pacific  Company  maintained  their  equip- 
ment in  1910  for  22.7  percent  of  total  operating  expense,  an  increase  of  25.4  percent  over  1901 ;  similarly 
the  Atchison  for  23  percent,  an  increase  of  8.0  percent;  the  Baltimore  &  Ohio  for  26  percent,  an  increase 
of  32  percent;  and  the  Pennsylvania  Railroad  for  26  percent,  an  increase  of  10.2  percent  over  1901. 

As  previously  stated,  repairs  to  locomotives  are  approximately  proportional  to  their  weight.  Like- 
wise, an  almost  fixed  relationship  exists  between  weight  of  locomotives  and  tractive  force.  The  latter 
unit  then  can  be  taken  as  a  measure  of  the  size  or  weight  of  locomotives.  The  average  tractive  force  of 
locomotives  from  1902  to  1910  with  the  percent  increase  compared  with  the  year  1902  is  shown  in  Fig.  3 
and  accompanying  table : 

Tractive  Force. 


Year 
1902 
1903 
1904 
1905 
1906 
1907 
1908 
1909 
1910 


Percent  Increase 

Average  per 

Compared  with 

Locomotive 

1902 

20,480  Lbs. 

00.0% 

21,780 

6.3 

22,800 

11.3 

23,430 

14.4 

24,740 

20.0 

25,640 

25.2 

26,356 

28.6 

26,634 

30.0 

27,200  ^Estimated) 

32.8 

34 

'03       06      OT 


Fig.  3. 


LocoMOT/i^E  Tractive  Force 


f\\/eraqe  Tractive  Force 
in  1000  Lbs. 


Percent  Increase  Compared 
With  )90a. 


02.      03      '04-       OS      Oi      'OT       O0      09       10 


'D3     '04      OS      06     '07 


Fig.  4. 


There  is  also  a  remarkable  similarity  in  the  increase  of  capacity  of  freight  cars  and  tractive  force 
of  locomotives  for  the  period  between  1902  and  1910.  During  this  time  the  capacity  of  freight  cars  hat; 
increased  28.6  percent  and  the  tractive  force  of  locomotives  32.8  percent.  Cars  and  locomotives  have 
steadily  grown  larger  in  approximately  the  same  ratio  from  year  to  year. 

The  average  capacity  of  freight  cars  from  1902  to  1910,  with  the  percent  increase  compared  \»-ith 
the  year  1902,  is  shown  in  Fig.  4  and  accompanying  table. 


Capacity  of  Freight  Cars. 


Year 
1902 
1903 
1904 
1905 
1906 
1907 
1908 
1909 
1910 


Average  per  Car 
28  Tons 
29 
30 
31 
32 
34 
35 
35 
36  (Estimated) 

A  comparison  of  locomotive  tractive  force  and  freight  car  capacity  with  maintenance  of  equipment 
to  total  operating  expense  for  the  period  between  1901  and  1910  (Fig.  2  and  3)  establishes  the  close  rela- 
tionship between  maintenance  costs  and  size  of  equipment.  Cost  of  maintaining  locomotives  or  cars  is 
approximately  proportional  to  tractive  force  or  capacity.  Through  the  medium  of  larger  equipment, 
lower  costs  of  conducting  transportation  are  secured,  entailing,  however,  increased  equipment  charges 
in  proportion  to  the  size  of  equipment. 

35 


Percent  Increase 

Compared  with 

1902 

00.0% 

3.6 

7.1 
10.7. 
14.3 
21.4 
25.0 
25.0 
28.6 


Maintenance  charges  for  large  equipment  are  greater  per  unit  on  account  of  increased  size  of  loco- 
motives and  cars,  more  extensive  shops  and  terminals,  heavier  machinery  and  modern  facilities  for  hand- 
ling and  repairing,  increased  wear  and  tear  on  equipment  from  heavier  trains  and  the  various  other  items 
coincident  with  operation  of  heavier  power. 

Operating  conditions  on  the  railroads  east  of  Chicago  are  along  fixed  and  tried  lines  while  the  west 
is  still  in  a  more  or  less  new  and  unsettled  condition.  Labor  in  the  west  is  scarce  and  generally  of  pK)or 
quality.  It  is  therefore  necessary  to  pay  higher  wages  in  order  to  attract  the  better  class  of  labor  from 
the  east. 

As  the  labor  charge  constitutes  more  than  half  the  equipment  maintenance  expenditures,  the  higher 
wages  paid  on  western  roads  will  be  reflected  directly  in  the  total  when  comparisons  are  made  with  eastern 
roads.  Metal  workers,  wood  workers  and  miscellaneous  shop  labor  include  most  of  the  employes  in  the 
locomotive  and  car  shops  and  fairly  represent  the  general  labor  situation. 

The  total  figures  taken  from  the  Interstate  Commerce  Commission  reports  separated  into  eastern 
and  western  roads  are  shown  in  chart  form  in  Fig.  5  with  actual  figures  as  follows: 

fiVffi/lGE  RATE  PER  HOUR  P/flD  VmOU5  EHPLOrEE^S  OPf 

RAILROADS. 
East  and  l^est  ofCh/ca^o, 

m. 


ct/rT5fr/fHoa^. 


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Fig.  5. 


Wages  per  Hour. 


Eastern 
Roads 

Western 
Roads 

Percent  Increase 
Western  over 
Eastern  Roads 

$.265 

$.327 

23  Percent 

.226 

.253 

12  Percent 

.197 

.215 

9  Percent 

Metal  Workers 

Wood  Workers 

Miscellaneous  Shop  Labor 

This  marked  increase  of  23  percent  in  wages  paid  metal  workers  on  western  roads  is  a  most  import- 
ant item  and  should  be  given  due  weight  when  comparisons  are  made  between  eastern  and  western  roads. 

LOCOMOTIVE  MAINTENANCE. 

The  most  logical  unit  for  measuring  maintenance  of  equipment  costs  is  the  gross  ton-mile  but  this 
is  not  available  and  is  not  kept  by  some  roads  nor  is  it  required  by  the  Interstate  Commerce  Commission. 
In  the  absence  of  this  information  the  analysis  will  be  continued  with  such  data  as  is  available. 

More  than  one-third  of  the  total  maintenance  of  equipment  expenditure  is  charged  to  repairs  and 
renewals  of  locomotives.  These  costs  should  therefore  be  carefully  studied  and  the  proper  unit  of  com- 
parison adopted  before  conclusions  are  drawn.  The  prevailing  unit,  in  comparing  locomotive  mainten- 
ance costs,  is  the  locomotive  or  locomotive  mile.  In  order  to  illustrate  the  great  difference  existing  on 
various  roads  a  chart  (Fig.  6)  is  presented  showing  the  cost  of  repairs  per  locomotive  for  the  years  1908, 

1909,  1910. 

36 


/^CPRIRS  TO    LOCOnOT//tS  P^R LOCOnOTIVE. 


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37 


Repairs  to  Locomotives  per  Locomotive. 


1908 

Penna.  R.  R «2,758 

N.  Y.  Central 2,390 

B.  &  0 2,225 

L.  S.  &  M.  S 1,690 

Lehigh  Valley 2,655 

D.  L.  &  W 1,960 

P.  C.  C.  &  St.  L 2,595 

Southern  Ry 1 ,907 

L.  &  N 3,258 

C.  &  A 2,571 

C.  B.  &Q 1,840 

C.  &  N.  W 1,795 

C.  R.  I.  &  P 2,150 

Union  Pacific 3,318 

Southern  Pacific 3,090 

A.  T.  &  S.  F 3,220 

C.  M.  &  St.  P 1,955 

Great  Northern 2,075 


It  is  noticeable  that  there  is  a  general  increase  on  most  roads  and  on  the  western  roads  in  particular. 

The  extremes  on  the  eastern  roads  are  noticed  on  the  L.  &  N.  and  the  P.  C.  C.  &  St.  L.  which  expend 
about  $3,000  per  locomotive  as  against  the  Lackawanna  with  an  expenditure  of  less  than  $2,000.  Of  the 
western  roads  the  LTnion  Pacific  and  Southern  Pacific  show  an  annual  cost  of  about  $3,500  per  locomotive 
as  compared  to  approximately  $2,000  each  on  the  Burlington,  Northwestern,  and  the  St.  Paul.  In  order 
to  form  an  idea  of  the  relative  performance  it  is  necessary  to  know  the  average  weight  of  the  locomotives 
on  each  road,  which  is  shown  in  Fig.  7.  Even  with  this  data  it  is  almost  impossible  to  draw  definite  con- 
clusions as  to  relative  performance. 


1909 

1910 

$2,490 

$2,777 

1,880 

2,089 

2,120 

2,888 

1,680 

2,185 

2,260 

2,185 

1,630 

1,750 

2,570 

2,958 

1,770 

2,303 

2,810 

2,988 

2,460 

2,818 

1,970 

2,152 

1,930 

2,301 

2,320 

2,446 

3,220 

3,647 

3,060 

3,478 

2,470 

3,088 

2,000 

2,361 

1,800 

2,230 

Average  Weight  on  Drivers  per  Locomotive — In 

1908  1909 

Penna.  Railroad 68 . 5  tons  69 . 7  tons 

N.  Y.  Central 65.6  68.0 

B.&  0 64.9  65.2 

L.  S.  &  M.  S 70.5  70.9 

Lehigh  Valley 60.9  62.5 

D.  L.  &  W 60.8  63.8 

P.  C.  C.  &  St.  L 63.4  63.5 

Southern  Ry 59.4  59.5 

L.  &N 59.0  59.4 

C.  &  A 60.5  63.8 

C.  B.  &Q 55.6  58.0 

C.  &N.  W 46.2  47.5 

C.  R.  I.  &  P 57.2  58.1 

Union  Pacific 67.7  67.6 

Southern  Pacific. 58.9  59.9 

A.  T.  &S.  F 63.9  63.9 

C.  M.  &St.  P 46.6  46.5 

(Jreat  Northern 67.0  66.9 


38 


Tons. 

1910 

70.2  tons 

69.7 

67.0 

76.0 

65.6 

65.2 

64.8 

60.8 

62.6 

66.6 

55.2 

49.7 

59.5 

68.8 

61.9 

64.1 

48.5 

68.8 


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The  repair  costs  on  a  locomotive  mile  basis  give  but  little  better  basis  for  comparison.  The  accom- 
panying illustration  (Fig.  8)  presents  figures  for  representative  roads  and  shows  that  the  costs  of  repairs 
on  the  Pennsylvania  Railroad  and  the  Lehigh  Valley  are  about  10  cents,  while  on  the  Lake  Shore  and  Lacka- 
wanna they  are  but  7  cents.  Of  the  western  roads  the  Union  Pacific  and  .'Southern  Pacific  expend  more 
than  11  cents  while  the  Northwestern  and  St.  Paul  cost  about  one-half  as  much. 


Repairs  to  Locomotives  per  Locomotive  Mile — In 

1908  1909 

Penna.  R.  R 10.3  Cents        10.2  Cents 

N.  Y.  Central 8.2  6.8 

B.&O 7.2  7.3 

L.  S.  &  M.  S 5.9  6.1 

Lehigh  Valley 10.8  9.9 

D.  L.  &W 6.4  6.2 

P.  C.C.  &St.  L 7.0  7.9 

Southern  Ry 8.0  7.1 

L.  &  N 9.0  8.1 

C.&  A 8.2  8.0 

C.B.&Q 7.5  7.4 

C.&N.  W 5.5  5.8 

C.R.  L&P 7.8  8.5 

Union  Pacific 11.2  11.3 

Southern  Pacific 10.9  11.6 

A.T.&S.F 11.6  9.7 

C.  M.  &St.  P 5.5  5.4 

Great  Northern 9.2  5.4 


Cents. 

1910 

10.1  Cents 

6.8 

9.2 

6.5 

8.7 

6.7 

7.8 

8.4 

7.9 

8.3 

7  0 

6.3 

8.3    • 
11.3 
11.5 
10.7 

6.0 

8.7 


R[miR^  TOLoconowES  FEZ?  Locomm^mi:. 


To  fully  interpret  these  results  it  is  necessary  to  know  the  mileage  made  per  locomQtive  which  is 
presented  in  Fig.  9. 

Miles  per  Locomotive — All  Classes. 

1908  1909  1910 

Penna.  R.  R 26,700  Miles     24,430  Miles     27,610  Miles 

N.  Y.  Central 28,950  27,820  30,660 

B.  &  O 30,750  29,155  31,480 

L.  S.  &  M.  S 28,650  27,860  33,430 

Lehigh  Valley 24,400  22,790  25,060 

D.  L.  &  W 30,630  26,340  26,090 

P.  C.  C.  &  St.  L 37,100  32,410  38,020 

Southern  Ry 27,100  25,080  27,550 

L.  &  N 36,300  34,740  37,900 

C.  &  A 31,240  32,660  33,800 

C.  B.  &  Q 26,900  26,840  30,900   ' 

C.  &  N.  W 33,000  33,330  36,530 

C.  R.  I.  &  P 27,700  27,360  29,650 

Union  Pacific 29,500  28,520  32,300 

Southern  Pacific 28,400  26,350  30,250 

A.  T.  &  S.  F 27,800  25,500  28,640 

C.  M.  &  St.  P 35,900  37,010  39,490 

Great  Northern 22,580  22,360  25,670 

40 


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41 


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42 


The  Interstate  Commerce  Commission  does  not  demand  locomotive  maintenance  costs  divided 
into  freight,  passenger,  etc.,  which  undoubtedly  should  be  done  if  comparisons  are  to  be  made  on  an  equable 
basis.  The  mileage  of  freight  and  passenger  locomotives,  however,  is  given  and  charts  are  presented  in 
Fig.  10  and  11.  Of  the  eastern  roads  the  P.  C.  C.  &  St.  L.  makes  more  than  25,000  miles  per  freight  engine, 
while  the  Pennsylvania  Railroad  but  17,000  miles.  The  St.  Paul  makes  more  than  26,000  miles  and  the 
Great  Northern  less  than  15,000  miles  per  freight  locomotive. 

Miles  per  Freight  Locomotive. 

1908       1909       1910 

Penna.  Railroad 17,280  Miles     15,060  Miles     16,870  Miles 

N.  Y.  Central 21,000  19,470  21,450 

B.  &  0 21,550  20,650  22,910 

L.S.&M.S 21,000  21,075  24,480 

I^high  Valley 21,200  19,530  21,380 

D  L.  &  W 24,550  20,710  20,500 

P.C.  C.&St.  1 28,350  24,010  27,880 

Southern  Ry 17,800  16,990  18,100 

L  &  N 33,450  32,350  37,040 

C.  &  A 25,070  25,560  25,060 

C.  B.  &Q 18,450  19,080  24,110 

C.  &N.  W 20,650  21,880  25,330 

C.  R.  I.  &P 19,600  20,470  21,240 

Union  Pacific 21,900  17,903  20,590 

Southern  Pacific 18,350  14,890  16,370 

A  T  &  S   F  21,600  18,830  21,400 

C.M.&St.P 26,300  27,160  26,770 

Great  Northern 1 1,110  12,650  14,350 

Miles  per  Passenger  Locomotive. 

Penna.  Railroad 36,550  Miles    37,410  Miles    40,260  Miles 

N.Y.  Central 38,400  36,890  39,950 

B&O          46,200  48,030  46,450 

L.S.&M.S 42,940  42,580  43,280 

Lehigh  Valley 37,300  32,640  35,420 

D.  L.  &  W. 33,920  33,530  34,440 

P.C.  C.&St.  1 49,400  46,810  52,220 

Southern  Ry 39,700  37,050  41,430 

L.  &  N 56,200  53,311  53,450 

C.  &A 43,370  47,090  49,990 

C.  B.  &Q 42,000  38,650  38,370 

C.  &  N.  W 55,500  52,240  51,920 

C.  R.  I.  &  P 39,200  35,520  42,280 

Union  Pacific 51,800  52,770  56,110 

Southern  Pacific 46,350  48,600  57,230 

A.T.&S.F 27,210  26,790  28,970 

C.M.&St.P 56,250  58,350  62,750 

Great  Northern 50,800  39,310  45,670 

A  chart  illustrating  miles  run  by  passenger  locomotive  (Fig.  11)  shows  the  extremes  to  be  the  St. 
Paul  with  60,000  miles  as  against  the  Atchison  with  less  than  30,000  miles  per  passenger  locomotive.  There 
are  undoubtedly  local  conditions  that  cause  this  high  mileage  on  the  St.  Paul  and  the  low  mileage  on  the 
Atchison,  but  this  goes  to  show  that  all  the  conditions  should  be  known  and  understood  before  conclu- 
sions are  drawn. 

43 


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It  is  thus  seen  tliat  the  locomotive  or  locomotive  mile  are  most  unsatisfactory  units  to  use  when 
computing  locomotive  maintenance  costs. 

A  unit  should  be  used  which  takes  into  consideration  the  power  developed  and  the  work  delivered 
by  the  locomotive.  The  engine  which  propels  the  steamship  is  rated  in  horsepower  and  the  performance 
is  calculated  in  horsepower-hours.  Electrical  power  units  are  similarly  rated  in  Watts  and  the  work  per- 
formed is  given  in  Watt-hours. 

Maintenance  costs  are  not  calculated  as  so  much  per  dynamo  but  based  on  the  work  done,  the  Watt- 
hours.  It  is  therefore  decidedly  reasonable  to  expect  to  show  locomotive  costs  on  a  similar  basis.  Tractive 
force  or  draw  bar  pull  is  the  usual  term  used  to  express  the  power  of  a  locomotive.  The  work  unit  (which 
may  be  called  the  tractive  mile)  is  the  product  of  the  tractive  force  and  mileage  made.  By  the  use  of  either 
of  the  above  units  (tractive  force  or  tractive-mile)  a  fair  and  equable  basis  of  locomotive  maintenance 

costs  can  be  made. 

The  gross  ton  mile  data  is  not  available,  but  fortunately  the  Interstate  Commerce  Commission 
recently  prepared  statements  on  twenty  roads  used  in  the  recent  rate  hearing  which  presented  detailed 
information  heretofore  unpublished.  This  data  is  very  full  and  complete  and  covers  ten  years  ending 
1910.     Comparisons  were  made  by  five  year  periods. 

Charts  are  herewith  presented  giving  exhibits  of  six  representative  eastern  and  six  western  roads 
showing  locomotive  maintenance  costs.  The  average  cost  of  repairs  and  renewals  of  locomotives  per  loco- 
motive for  five  years  ending  1910  compared  with  five  years  ending  1905  is  presented  in  Fig.  12.  It  is  notice- 
able that  maintenance  charges  on  this  basis  have  increased  on  all  roads. 

Repairs  and  Renewals  of  Locomotives  per  Locomotive. 

Average  5  Yrs.     Average  5  Yrs.  Percent 

Eastern  Roads  Ending  1905  Ending  1910  Increase 

N.  Y.  Central $2,150  $2,430  13.0% 

Penna.  Railroad 2,340  2,640  12.8 

D.  L.  &W 1,480  1,690  14.2 

B.  &0 2,370  2,440  3.0 

Wabash  R.R 2,530  2,580  2.0 

Lehigh  Valley 2,670  2,690               1.0 

Western  Roads 

C.  M.  &St.  P $1,365  $2,150  57.5% 

C.  R.  I.&P 1,840  2,330  26.6 

C.&N.  W 1,660  2,010  21.1 

C.  B.  &Q 2,320  2,620  13.0 

C.  &A 2,300  2,595  12.8 

A.  T.  &S.  F 2,600  2,720  4.6. 

Fig.  13  illustrates  the  increase  in  repairs  and  renewals  of  locomotives  per  locomotive  mile  during 
the  above  mentioned  period. 

Repairs  and  Renewals  of  Locomotives  per  Locomotive  Mile. 

Average  5  Yrs.     Average  5  Yrs.      Percent 

Eastern  Roads  Ending  1905        Ending  1910      Increase 

N   Y  Central     5.65  Cents  7.81  Cents  38.2% 

D.  L.&W 4.24  5.49  29.5 

Penna.  Railroad 7.72  9.78  26.7  : 

Wabash 6.23  7.65  22.8 

B.  &0 6.98  7.67  10.0 

Lehigh  Valley 10.37  10.80  4.2 

Western  Roads 

C   M   &  St.  P 3.46  Cents  5.36  Cents  55.0% 

aR.L&P 6.20  8.22  32.6 

C.B.&Q 6.78  9.07  33.6 

C.&N.W 4.34  5.68  31.0 

C  &  A 6.28  7.76  23.6 

A.T.&S.  F 9.73  10.19  4.7 

46 


f?tPy4/R5  AND RENEmiS  OF LOCOMOWES 

PFR  Locomr/VE 

Av€m(fc  of S /ears  fndngl9IO  Compared  tfith  3 /em  ^dm^/ fits' 


%/^ 


9tCr€^C 


lO 


£,iSTeRN 


NY  CENT 

PENNRR. 

OLesW 

WABA5h 

CM.»StP 

CRJ.erP 

C^MW 

c.  a.^a 

C^A. 


AT€kSiE 


^ 


ROADS 


WESTEPA  ROADS 


%/ffC^OS^  /O 


Sc 


zo  30 

Fig.  12. 


<50 


«e 


47 


R£PfllR5  ftHD  REriEW/iLS  OR LOCO/IOmtS  PER 

loconoT/yE  hile. 

Average  of  S  Years  Ending  1910  Compared  ivifh 

S  ySars  Endmg  /90S. 


//rcR/^As^T^' 


f9 


nrcE/iT 
autv, 

mmH 

BSO. 


ERSTtRn  /f 0/1  OS. 


40 


cmsTP 


l¥ESTERnmD5. 


so 


eo 


60 


48 


The  Nev,'  York  Central  shows  an  increase  of  38  percent  and  the  St.  Paul  an  increase  of  55  percent, 
while  the  Lehigh  Valley  and  the  Atchison  increased  less  than  5  percent. 

The  costs  when  calculated  on  the  basis  of  tractive  force  (which  is  undoubtedly  a  strictly  fair  unit  i 
averaged  for  five  years  ending  1910,  are  shown  in  Fig.  14. 

Repairs  and  Renewals  of  Locomotives  per  Ton  Tractive  Force. 


Eastern  Roads 

D.  L.  &  W 

Penna.  Railroad 

N.  Y.  Central 

B.  &0 

I^ehigh  Valley 

Wabash 

Western  Roads 

C.  M.  &St.  P $172. OC) 


Average  5  Yrs. 
Ending  1905 

$121.00 

181.00 

191.00 

182.00 

241.00 

280  00 


C.  R.  I.  <fe  P. 
C.  &N.  W. 

C.  &  A 

C.  B.  &  Q. .  . 

A.  T.  &  S.  F. 


180.00 
189.00 
198.00 
246.00 
219.00 


Average  5  Yrs. 
Ending  1910 

$133.00 

169.00 

170.00 

158.00 

200.00 

228.00 

$217.00 
185.00 
191.00 
186.00 
223.00 
182.00 


Percent 
Increase 

10.0% 


Percent 
Decrea.*^e 


26.2% 
2.8 
1.0 


6.6% 
11.0 
13.2 
17  0 
18.5 


6  1% 
9.3 
16.9 


A  comparison  of  the  performance  by  five  year  periods  (Fig.  15)  for  the  eastern  roads  points  out 
the  fact  that  while  the  Wabash  and  Lehigh  Valley  spent  the  most  money  per  ton  of  tractive  force  they 
made  a  decrease  of  more  than  15  percent  during  the  five  years  ending  1910  over  the  five  years  ending  1905. 
The  Lackawanna  on  the  other  hand,  while  showing  the  least  expenditure  per  ton  of  tractive  force,  actually 
increased  their  costs  in  the  five  year  period  ending  1910  over  the  previous  five  years.  The  western  roads 
show  a  more  nearly  equal  expenditure,  but  a  wider  variation  in  comparing  the  two  five  year  periods.  The 
St.  Paul  shows  an  increase  of  26.2  percent  in  the  five  year  period  ending  1910  over  the  five  year  period 
ending  1905,  the  Atchison  shows  a  decrease  of  16.9  percent  during  the  same  period. 

The  locomotive  maintenance  costs  computed  on  the  tractive  mile  or  work  unit  basis  (Fig.  16)  show 
that  the  Lehigh  Valley  costs  are  highest  but  that  they  have  decreased  their  costs  14.5  percent  (Fig.  17). 
The  Lackawanna  is  just  the  reverse  in  that  their  costs  are  the  lowest  per  work  unit  but  they  have  increased 
24 .6  percent  during  the  past  five  years  as  compared  with  the  five  year  period  ending  1905.  On  the  western 
roads  there  is  not  the  variation  noted  on  the  eastern  roads  in  actual  costs.  However,  in  comparing  the 
two  five  year  periods  the  extremes  are  the  St.  Paul,  with  an  increase  of  23.2  percent,  and  the  Atchison, 
with  a  decrease  of  19.5  percent. 

Repairs  and  Renewals  of  Locomotives  per  Work  Unit 

Percent        Percent 
Increase      Decrease 

24.6%         


Eastern  Roads 
D.  L.  &  W 

N.  Y.  Central     .  . 
Penna.  Railroad 
Wabash 

B.  &0 

Lehigh  Valley  . . .  . 

Western  Roads 

C.  M.  &St.  P.... 

C.  B.  &Q 

V.k  N.  W 

C.  &  A 

C.  R.  \.k  P 

A.  T.  &S.  F 


Average  5  Yrs. 
Ending  1905 

Average  5  Yrs 
Ending  1910 

$1.75 

$2.18 

2.52 

2.74 

3.03 

3.14 

3.48 

3.38 

2.71 

2.48 

4.70 

4.02 

$2 .  20 

$2.71 

3.72 

4  25 

2.48 

2.69 

2.73 

2 .  80 

3.3«i 

3  26 

4.21 

3 .  39 

8.7 
3.6 


2.9% 

8.5 
14.5 


23  2% 
14.2 

8.5 

2.6 


3  0%, 
19  5 


49 


/^EP/lfRS  Afro  R£/Y£mLS  OF  L0C0/70T/y£d 

F£R  ron  TRAcr/VF  ro/?cE. 

5  Years  Ending  /9/0. 


LV 

BSrO- 


CBirQ. 

C.R./.^/' 
CS-A. 

Amsr. 


so         no         /so 

tftSTfRiy  Rom^. 


IY£Sr£Ra  ROADS . 


so 


mo 

Kio.  14. 


/eo 


so 


200 


250 


ioo 


2SO 


REPAIRS  AtlD  REHtWALS  OE  LOCOHOT/VES 
EER  Ton  TRACWE  FORCE. 

Average  oF  6  Ytars  Ending  f9/0  Compared 
(uifh  4^  Fear^  Ending  /906. 


%D£CRF/tSE.  I 

20  /S  X)  S  0 


DldclV. 
PFiiffAM. 

/rrcF/rr. 

BJtO. 

IV. 

iVASAJ/f 


cn&srp 
c.^irw 

C.d'A. 

c.B&a. 

AJihSE 

%  zo 


fS 


Efl<SrERn ROADl 


%/rfClfF/i5£. 

s         /O  /$ 


ivtsrmROflDs. 


fC 


5  O 

Fig.  15. 


/O 


20         2S 


rs      ZO      as 


51 


IHi 


REPAIRS  AND RENtmL^  OF  L0C0M0WE5 

PER  V\/ORH  UNIT 
Average  of  S  Years  Endtnq  1^10 

A       so      lOO     iSO     :ioo     zso     SCO     a^c    ^(v 


1 

L.V. 

1 

yVABASh 

1 

P£NN  RR 

1 

NYCBINT 

1 

3&0 

DL^^W 

Cae^Q. 

t                ■ 

Arc,5r 

CRje^P 

i 

Ce^A 

■ 

CMej^tR 

C^A/W 

4f 


m'5TSAWP0,WS 


.SO        too      /.so        zoo      9SO        3.00      3.50      ^.00 

Fig.  16. 


/?tmRs  mo  R^twflLS  or LXomT//fs 

PER  WORK  u/r/r. 

Average  of  S  )^ars   5nc/ing  /9/0  Compared 

rtith  4-  Vear^  ^ndin^/90S. 


so 


BJhO. 


CBM 

c.miY. 

C.S'A. 
CR/J-R 


%DecRC/ise.    I 

a     /o      s      o 


s      to      /s 


WeSTGtfl  ffOflDS. 


to         IS        fO 


5  O 

Fio.  17. 


ZB         IS 


n      a     a      is 


53 


•"■HH 


MM 


FREIGHT  CAR  MAINTENANCE. 

Freight  car  maintenance  constitutes  approximately  7  percent  of  the  total  operating  expense  and 
30  percent  of  the  total  cost  of  maintenance  of  equipment. 

A  common  method  of  comparison  of  maintenance  of  freight  cars  is  "per  car  owned,"  and  a  (;hart 
(Fig.  18)  is  given  herewith  showing  the  cost  per  car  on  a  number  of  representative  roads.  On  the  roads 
illustrated  the  cost  per  car  varies  from  $65  on  the  Pennsylvania  Cqmpany  to  $122  on  the  Union  Pacific 
System  and  $126  on  the  Southern  Pacific  System.  The  average  capacity  varies  from  a  minimum  of  31 
tons  on  the  Atchison  to  a  maximum  of  44.8  tons  on  the  P.  C.  C.  &  St.  L. 

Maintenance  of  Freight  Cars  in  1910. 

Per  Freight     Per  1,000  Frt. 
Car  Owned         Car  Miles 

N.  Y.  Central  Lines $104 .  $  9.03 

•      L.  S.  &M.  S 74.  7.75 

Phila.  &  Reading 99.  13 .  29 

Lehigh  Valley 77 .  7.91 

B.&O 74.  7.88 

Penna.  R.  R 72.  8.88 

■      Penna.  Company 65.  8.94 

P.  C.  C.  &  St.  L 117.  8.88 

C.  B.  &Q 97.  7.73 

C.  R.  L&P 76.  6.95 

Misvsouri  Pacific 76 .  8.12 

A.  T.  &  8.  F.  System 97 .  7.11 

Union  Pacific  System 122 .  7 .  23 

Southern  Pacific  Co 126.  10.04 

The  remarkably  low  cost  on  the  Pennsylvania  Co.  as  compared  with  the  high  cost  of  the  Union 
Pacific  System,  in  place  of  reflecting  economy  in  one  case  and  extravagance  in  the  other,  serves  as  con- 
clusive evidence  that  the  "maintenance  per  freight  car  owned"  is  useless  as  a  comparative  unit. 

Upon  the  Interstate  Commerce  Commission  records  for  the  fiscal  year  1910,  the  Union  Pacific  System 
reports  441,540,857  freight  car  miles  and  26,043  freight  cars  owned;  while  the  Pennsylvania  Co.  reports 
401,108,276  freight  car  miles  and  54,248  cars  owned.  The  Pennsylvania  Co.  with  108  percent  more  freight 
cars  than  the  Union  Pacific  has  9  percent  less  mileage,  which  condition  can  exist  either  from  an  excessive 
number  of  cars  or  by  a  very  large  amount  of  interchange,  which  latter  is  probably  correct  as  80 . 3  percent 
of  the  freight  car  mileage  on  the  Union  Pacific  System  was  from  foreign  cars. 

The  interchange  of  traflfic  renders  maintenance  costs  per  "freight  car  owned"  of  little  value 
for  comparative  purposes.  Other  conditions  also  modify  the  usefulness  of  this  unit.  The  cost  of  freight 
car  maintenance  is  proportional  to  age  of  the  equipment,  its  present  condition,  class  of  traflfic  handled, 
and  total  weight  in  transit  and  business  hauled.  In  addition  the  physical  characteristics  have  considerable 
influence  as  repairs  are  more  extensive  in  mountainous  districts  where  heavy  grades  and  curvature  prevail 
than  on  the  plains  where  grades  and  curvature  are  slight  in  comparison. 

It  is  clear  from  the  foregoing  that  costs  per  "car  owned"  cannot  be  used  as  a  basis  for  comparing 
maintenance  of  freight  cars  on  different  roads.  For  roads  operating  in  the  same  general  territory  the  "ton 
mile"  is  an  equable  basis  of  comparing  maintenance,  but  on  account  of  the  variation  in  operating  condi- 
tions on  roads  in  difi"erent  sections  of  the  country  it  is  not  adaptable  as  a  unit  for  universal  comparative 
purposes. 

A  satisfactory  basis  for  analysing  maintenance  of  freight  cars  is  the  "gross  ton  mile,"  but  as  these 
records  are  not  kept  by  the  Interstate  Commerce  Commission  the  information  is  not  available.  As  the 
gross  ton  mile  includes  the  weight  of  the  car,  whether  loaded  or  empty,  and  the  miles  hauled,  it  is  obvious 
t  he  unit  is  ideal  for  comparing  maintenance  costs. 

54 


MAINTEHANCE  OF  rRElGHT  CAR5 
PetTreight  Car  Oyvned 


Ji     /O     ZO  3C    AO     so     6O     70    SO    90      100  m 


PEN N  CO. 
PENNRR. 


RHILAsfR. 

A/YCE'NT 

RC.Ce^^iL 

UNIONPAC 

3O.PAC.  i 

4 


to 


ZO  30   AO    50    60    70      &0    ^O    too   tfO   fZO 

Fig.  18. 


The  Commission  presents  data  on  the  "revenue  ton  mile"  which  is  not  a  satisfactory  basis  of  com- 
parison as  it  does  not  include  the  empty  car  mileage  or  that  of  cars  engaged  in  transporting  company  maU'- 
rial  Obviously  the  omission  of  this  traffic  renders  the  information  quite  incomplete.  The  mileage  of 
empty  cars  is  a  large  item.  For  instance,  in  1910  on  the  Union  Pacific  System  it  was  23.4  percent  of  the 
total  car  mileage,  29.6  percent  on  the  Atchison,  33.7  percent  on  the  Pennsylvania  R.  R.,  and  3d  percent 
on  the  Reading.  Empty  cars  in  service  are  subject  to  the  wear  and  tear  of  traffic  and  depreciation  in  ap- 
proximately the  same  ratio  as  cars  in  revenue  service.  Likewise  cars  carrying  company  material  are  in 
the  same  service  as  revenue  freight  when  maintenance  is  considered.  Company  material  is  an  extensive 
t  raffic  item.  For  example  during  the  fiscal  year  1910  the  net  ton  miles  of  company  material  on  the  Southern 
Pacific  was  equal  to  20  percent  of  the  revenue  ton  miles,  while  on  the  Atchison  it  was  32  percent. 

It  is  unfortunate  that  data  on  "gross  ton  miles"  is  not  available  in  view  of  its  value  as  a  unit  tor 
comparing  maintenance  of  freight  cars  on  different  roads.  Without  this  information  an  analysis  of  main- 
tenance costs  cannot  be  carried  to  a  positive  conclusion,  but  the  usual  unit  of  comparison,  namely,  "cost 
per  1,000  freight  car  miles"  is  presented  (Fig.  19)  for  the  leading  roads  for  1910  as  the  most  defimte  <lata 
available.  The  figures  given  indicate  approximate  costs  of  maintenance  without  the  accuracy  of  the  '•  gross 
ton  mile"  unit. 


55 


i 


miflTE/lfmCE  OF  FR^/(iHT  C/^R5. 
Per  /OOO  Car  Hf/es. 
/9/0. 

S      /       Z       S        4-       S       6        ?       8       9       JO      /f      /2      /3      /4 


CRI.&P 

uffmfyic 

CBM. 

LS.ms 
fi^rrm.co. 

SOUP/IC. 
PMLM/? 


S      /       2      3       i-      S      6       7      e       S      A?      /f      /2     /J     k 

Fig.  19. 


fi6 


PASSENGER  CAR  MAINTENANCE. 

The  charges  for  passenger  car  maintenance  are  less  than  10  percent  of  the  expenditure  for  main- 
tenance of  equipment  or  about  2%  of  the  operating  expense  and  therefore  of  minor  importance  when  con- 
sidering total  operating  expenses. 

The  demands  of  the  travehng  pubhc,  local  conditions,  size  of  equipment  all  have  a  bearing  on  the 
repair  costs  and  comparisons  among  different  roads  are  generally  of  but  little  value. 

Unfortunately,  the  Interstate  Commerce  Commission  records  do  not  contain  any  data  \\ith  refer- 
ence to  the  size,  capacity  or  weight  of  the  passenger  coaches  for  the  different  railroads.  Since  it  is  quite 
evident  that  coaches  70  feet  in  length,  with  steel  underframes,  and  six  wheel  trucks,  will  cost  more  to  main- 
tain than  coaches  55  feet  long  with  wooden  underframes  and  four  wheel  trucks,  it  is  practically  impossible 
with  the  data  at  hand  to  effect  accurate  comparisons. 

As  in  the  case  of  freight  car  maintenance,  the  usual  method  of  comparison  is  on  a  basis  "per  passenger 
car"  and  the  accompanying  chart  (Fig.  20)  shows  the  maintenance  cost  on  this  basis  for  a  number  of  rep- 
resentative roads.  These  figures  vary  from  $656.00  on  the  Lackawanna  to  $1,344.00  on  the  Reading  and 
$562.00  on  the  Northwestern  to  $1,286.00  on  the  Union  Pacific. 

Maintenance  of  Passenger  Cars  in  1910. 

Per  Passenger     Per  1 ,000  Pass. 
Car  Owned  Car  Miles 

N.  Y.  Central  Lines $    734  $11 .41 

L.S.  &M.  S 1,195  11.74 

Phila.  &  Reading 1,344  37 .05 

D.  L.  &W 656  14.84 

B.&O 690  9.85 

Penna.  R.  R * 915  13.73 

P.C.C.&St.L 908  10.12 

III.  Central 581  12.57 

C.  &N.  W 562  8.36 

C.B.&Q 701  7.60 

Mo.  Pac 1,093  13.20 

A.  T.  &  S.  F.  System * 1,055  U  .67 

Union  Pacific  System 1,286  15.83 

Southern  Pacific  Co 1,118  19.42 

The  mileage  made  is  another  common  basis  of  comparing  passenger  car  maintenance  costs.  The 
accompanying  chart  (Fig.  21)  shows  some  interesting  comparisons  of  roads  operating  in  the  same  territory. 

The  maintenance  cost  on  the  Reading  per  1,000  car  miles  is  $37.05,  $10.12  on  the  P.  C.  C.  &  St.  L., 
$19.42  on  the  Southern  Pacific  System,  and  $7.60  on  the  C.  B.  &  Q. 

These  figures  are  more  interesting  in  connection  with  the  maintenance  on  roads  operating  in  the 
Central  States,  the  Burlington  at  $7.60,  the  Northwestern  at  $18.36,  the  Illinois  Central  at  $12.57  and 
the  Missouri  Pacific  at  $13.20.  Again,  roads  operating  from  the  west  and  southwest,  the  Atchison  at 
$11.67,  Southern  Pacific  System  at  $12.89  and  the  Union  Pacific  System  at  $15.83. 

Comparisons  of  this  nature  can  be  drawn  on  this  basis  among  the  different  railroads,  but  as  has 
been  mentioned  above,  these  figures  arc  only  of  relative  value. 

Passenger  car  maintenance  costs  are  in  direct  relation  to  the  weight  and  the  distance  carried.  The 
ton-mile  is  therefore  the  most  satisfactory  basis,  as  in  the  case  of  freight  cars,  but  this  figure  is  not  demanded 
by  the  Interstate  Commerce  Commission  and  therefore  not  obtainable. 


57 


/i/i//i/re/imc£:  or  m^js/rsf/?  c/i/?6. 

Per  Car  Otvned. 
/9/0. 

$     /OO    200    300     400    600    600    TOO    600  300    /(X)0  //OO    /200  A300 


Stf-O 

/70.P/IC. 
60(/.P/fC 

(/rf/0/ff¥IC 


100    200    joo    wo    SCO    600    700    eoo   soo    /coo  //OO   /zoo    /JOO 

Fio.  20. 


58 


IMHi 


m//irfrfmcf:  orp/iss£mfP  cMd 

Per  /OOO  Passenger  Car/1//e6. 


* 


C.BM. 

cs-//.yy 

/CCS"5f/. 

//KCf//r. 

/u  ct/rr 

rfo./^c 

/¥/////?/?. 

mmp/fc. 

s30i/.P/IC. 
/W/LMR 


/9/0. 


/o 


fS 


20 


25 


30 


35 


W 


/S 
Fia.  21. 


20 


25 


30 


35 


M 


SHOP  MACHINERY  AND  TOOLS. 

The  items  of  locomotives,  freight  cars,  and  passenger  cars  constitute  about  three-fourths  of  the 
charges  to  maintenance  of  equipment.  The  remainder  is  made  up  of  superintendence,  electric,  floating, 
and  power  plant  equipment,  injuries  to  persons,  shop  machinery  and  tools,  stationery  and  printing,  and 
other  expenses.  The  only  item  which  is  worth  considering  is  that  of  shop  machinery  and  tools,  and  this 
expenditure  amounts  to  about  3  percent  of  the  total  maintenance  of  equipment. 

The  charges  to  this  account  should  be  in  direct  relation  to  the  size  of  and  to  the  service  rendered 
by  the  locomotive.  The  expenditures  in  the  freight  and  passenger  departments  are  small  and  of  but  little 
consequence. 

Therefore  the  locomotive  tractive  force  is  the  fair  basis  to  use  for  comparative  purposes.  Charts 
are  presented  illustrating  costs  on  representative  roads  for  maintaining  shop  machinery  and  tools  on  a 
tractive  force  basis  (Fig.  22),  and  also  the  work  unit  (average  tractive  force  multiplied  by  locomotive  mileage) 
basis  (Fig.  23). 

Maintenance  of  Shop  Machinery  and  Tools  in  1910. 

Per  lb.  of  Per 

Tractive  Force    Work  Unit 

N.  Y.  Central  Lines 61  cents  19.6  cents 

L.  S.  &M.  S 84  25.2 

Phila.  &  Reading 92  35.6 

N.  Y.  N.  H.  &H 99  39.3 

D.  L.  &  W 63  23.2 

B.  &  0 78  24.6 

Penna.  R.  R 68  24.7 

P.  C.  C.  &St.  L 97  25.5 

111.  Central 97  31.7 

C.  B.  &Q 82  26.2 

C.  R.  I.  &P 57  19.1 

A.  T.  &S.  F 40  14.0 

Union  Pacific 55  24.4 

Southern  Pacific 70  23.2 

In  treating  the  subject  of  maintenance  of  equipment  expenditures,  it  has  been  impossible  to  separate 
charges  for  labor  from  material  charges.  This  is  exceedingly  unfortunate  as  a  thorough  and  complete 
analysis  cannot  be  made  without  knowing  the  proportional  charges  between  labor  and  material. 

It  is  to  be  hoped  that  the  Interstate  Commerce  Commission  will  see  the  importance  of  this  informa- 
tion and  ask  the  railroads  to  furnish  it  in  the  future. 

This  completes  the  analysis  of  maintenance  of  equipment  costs.  Much  of  the  data  is  presented 
in  entirely  original  form,  not  only  for  the  purpose  of  rendering  consistent  comparisons  of  costs  on  various 
roads,  but  also  to  point  out  the  uncertain  value  of  the  accustomed  standards  of  measurement.  The  follow- 
ing chapter  deals  with  charges  in  the  largest  division  of  operating  expense,  "Conducting  Transportation." 


\ 


eo 


MAINTCNANCC  or  SHOP  MACHINERY  A/iD  TOOLS 

Per  Pound  of    Tractive  Foroz, 


t9IO 


C9.nft   fO       ZO.      ^P.      '♦O.      SO.       60        70. 


90       too. 


AT^sr 

UNION  PAC, 
CRIMP 
NY  CENT 

P^NNRR. 
SO.PAC. 

C3e.Q. 

PHILA,  R 
RCC.  ^StL 

ILLCENT 
N.YN.n^M 


C^r^/S      'O 


fOO 


61 


N 


nmT£mncE  or  shop  mcHiti£Rr  mo  roots. 

Per  IVorA  Unit. 


cEim.  s 


n 


/s 


X 


Z5 


30 


35 


CR./&-P. 

/trcf/rr 

DlJiriY. 

5ou.m:. 
utiiofif^c. 

3&0. 

/rm/i.m. 

fiCCASTL. 

C.B.H'Q. 

/a.ccnr 


PHIUK&R. 


40 


cenrs,  s 


10 


ts 

FW.  23. 


T 

zo 


zs 


30 


35 


^0 


Railroad  Operating  Costs. 


C^HAPTER  V. 

CONDUCTING  TRANSPORTATION. 

From  the  nature  of  their  service,  railroads  are  public  utility  corporations.  Primarily  they  are  pri- 
vately owned  commercial  enterprises  engaged  in  the  manufacture  of  transportation  for  profit.  For  deliver- 
ing transportation  to  the  commonwealth,  railroads  have  built  up  great  manufacturing  structures  and  manned 
them  with  vast  organizations  of  men. 

In  previous  chapters  the  maintenance  of  the  manufacturing  property,  namely:  roadway,  rolling 
stock  and  subsidiary  branches,  have  been  considered.  The  operation  of  the  property  and  the  various 
items  entering  into  conducting  transportation  will  be  discussed  in  this,  the  final  chapter  of  the  series. 

Conducting  transportation  is  the  largest  of  the  main  divisions  of  expenses,  absorbing  more  than  one- 
half  of  the  total  expense  of  operation.  As  outlined  in  the  previous  chapter,  the  ratio  of  conducting  trans- 
portation to  total  expense  has  been  decreasing  during  the  past  decade  while  maintenance  of  property  has 
increased  in  similar  proportion.  Analogy  was  drawn  between  improved  transportation  facilities  and  lower 
costs  of  operation.     That  a  relation  on  this  basis  does  exist  is  quite  clearly  shown  in  Fig.  1. 

The  relative  proportion  of  conducting  transportation  and  maintenance  of  property  to  total  operating 
expense  for  the  years  1901  and  1910,  with  the  percent  increase  and  decrease  in  the  latter  over  the  former 
year,   is  as  follows: 


1901 


Conducting  Transportation 54. 

Maintenance  of  Property 40 


o 


1910 

53.0% 

43.7% 


Increase 


2.6% 


Decrease 
19% 


62 


Referring  to  Fig.  1,  it  is  observed  that  the  ratio  of  conducting  transportation  to  total  operating 
expense  has  decreased  on  an  average,  for  the  ten  year  period,  of  .2  percent  per  year.  An  average  ratio 
line  is  added  to  the  chart  to  show  this. 

Unlike  the  maintenance  accounts,  there  is  a  direct  relation  between  transportation  expenses  and 
the  amount  of  business  handled.  The  maintenance  of  way  and  structures  expenses  can  he  reduced  for 
a  limited  period  irrespective  of  the  business  handled;  the  renewals  of  ties,  rails,  ballast  or  bridges  may 
be  neglected  for  a  considerable  length  of  time,  though  such  a  method  of  decreasing  expenses  will  make 
itself  very  evident  in  a  future  period,  so  that  a  comparison  of  these  expenses  must  extend  over  a  period  of 
several  years. 

Through  large  additions  of  new  power  or  rolling  stock,  the  maintenance  of  equipment  expenst^s  may 
be  greatly  reduced  for  a  short  time,  hence  a  comparison  of  one  years  maintenance  costs  maj^  result  in  errone- 
ous conclusions. 

Not  so  with  transportation  expenses,  as  these  are  in  direct  relation  to  the  amount  of  business  handleil. 
The  usual  method  employed  in  comparing  cost  of  conducting  transportation  is  per  train  mile.  Costs  on 
this  basis  for  representative  eastern  and  western  roads  in  1910  are  shown  in  Fig.  2  and  the  following  table: 

Cost  of  Conducting 
Transportation  Per 
Eastern  Roads  1,000  Train  Miles 

L.  &  N.  Railway $    580. 

B.  &0 694. 

N.  Y.  Central 736. 

Erie 770. 

Lehigh  Valley 801. 

L.S.&M.S 806. 

Penna.  Railroad 919 . 

N.  Y.  N.  H.  &  H 1,007 

63 


( 'oat  of  Conducting 
Transportation  Per 
Western  Roads  1,000  Train  Miles 

Union  Pacific $  740 . 

C.  &N.  W 743. 

A.  T.  &S.  F 751. 

C.  B.  &Q 760. 

C.  M.  &St.  P 808. 

Great  Northern 832. 

Southern  Pacific. 918 

Northern  Pacific 953 . 

RATIO  OF nmT£n/{na  oFPROPERrrfinD  conoucrm 
TRAfispommn  to  mmc  0P£R/iT/m  cxpc/r^c. 


X 


iO 


55 


50 


^ 


K 


cotiDUcrifiQ  Tf^fKn^poRmrton, 


n/^tnTcn/\ncc  or  prop^rtv 


\ 


Fig.  1. 
For  the  purpose  of  analysis  the  principal  items  of  expense  in  conducting  transportation  are  shown 
in  percent  of  total  in  Fig.  3  and  accompanying  table. 

Enginemen,  Yard  and  Trainmen 34  Percent. 

Locomotive  Fuel 25 

Station  Men  and  Dispatching 17 

Claims,  Damages  and  Miscellaneous  Expense  11 

Enginehouse,  Engine  Supplies  and  Expenses  6 

Train  Supplies  and  Expenses 4 

Supervision   3 

64 


COST  or  comucm^  mA/f^Fo/?mm/r 

r'gr  /OOO  Th/h  /7//<m. 


S      200         400         600 


aoo 


/OOO 


Ldrrf. 


ATdiSJ" 


I 


A/r J/r>Rr  yW/f^J. 


>$     200.         400 


600 


SOO        /OOO 


Fig.  2. 


«5 


DIVISION  OF  CONDUCTING    TRANSPORTATION 

txPENSzs  ON  large:  roads 


SUPCR  Vt^lON     3  0% 


ENGINE,  ^UPRUES 
^£:XPeA4S£S      ^o% 

CLAIM ^%  DAMAGES 

€s M/3CL  EXPENSES 
If  o% 

ST/iT/ON/yiEN    €s 
D/SPiATCAiERS    17.0% 


LOCOMOTIVE   ruEU 
ZSO% 

ENQ^NEMEN  15  0% 
YARO  ^TRA/NMCN 
/^,0%  -  TOTAL  3A.0 


Fig.  3. 


66 


Careful  analysis  of  these  expenses,  discloses  many  items  that  are  not  dependent  upon  the  discretion 
of  the  management  and  consequently  any  deductions  of  the  performance  on  the  train  mile  basis  for  the 
same  railroad  during  different  periods,  or  among  various  railroads  for  the  same  period,  may  l)e  unfair,  as 
each  item  of  this  expense  must  be  given  separate  study. 

The  wages  of  yardmen,  trainmen  and  enginemen  constitute  approximately  34  percent  of  the  total, 
while  the  wages  of  station  employes  and  train  dispatchers  are  approximately  17  percent  so  that  these 
expenses  which  are  essentially  labor  items,  make  up  50  percent  of  the  total  cost  of  conducting  transportation. 

As  the  cost  of  conducting  transportation  is  more  than  one-half  the  operating  expenses,  the  wages 
paid  the  above  classes  of  labor  approximate  25  percent  of  the  total  operating  expenses. 

It  is  therefore  logical  to  say  that  one-half  the  cost  of  conducting  transportation,  or  one-fourth  the 
total  operating  expense,  is  independent  of  the  skill  of  the  individual  or  the  administrative  ability  of  the 

supervising  officer.  t     mm 

Locomotive  fuel  is  the  largest  single  item  of  expense  in  railroad  operation  or  maintenance.  In  1910 
it  was  equivalent  to  61.7  percent  of  the  cost  of  maintenance  of  way  and  51.5  percent  of  the  cost  of  main- 
tenance of  equipment.  In  1910  it  comprised  approximately  25  percent  of  the  total  cost  of  conducting 
transportation  as  against  19.3  percent  in  1901.  The  ratio  of  fuel  expenditure  to  cost  of  conducting  trans- 
portation for  the  past  ten  years  is  as  follows: 

1901   19.3  Percent. 

1902  1^  7 

1903   20.9        - 

1904  21.0       - 

1905   20.3        " 

1906  20.2       '^ 

1907   20.7       '' 

1908  23.1 

1909   23.2 

1910   25.0        "     (Estimated) 

The  diagram  in  Fig.  4  shows  the  cost  of  fuel  per  engine  mile  averaged  for  the  five  year  period  ending 
1910  for  representative  eastern  and  western  roads.  This  data  was  compiled  by  the  Interstate  (^ommerce 
Commission  for  use  at  the  recent  rate  hearing.    The  information  illustrated  is  as  follows: 

Cost  of  Fuel  per  Engine  Mile. 

Average  5  Yrs.  Average  5  Yrs.  Percent 

Eastern  Roads                                   Ending  1905  Ending  1910  Increa^ 

Penna.  Railroad 9.5Cents  10.5Cents  10.5% 

Lehigh  Valley 11-5  13.7  19.1 

Erie 9.7  12.0  23.7 

Wabash 7.4  9.9  33.8 

N.Y.  Central 7.9  10.7  35.4 

D.L.&W 6.7  9.4  40.3 

Western  Roads 

AT&SF                           lO.lCents  U.OCents     14.8% 

CM.&St.P.. 10.0            .        12.5  25.0 

C.&A 7.0  9.3  32.8 

C  B  &Q                  9  5  13.1  37.9 

C.&N.W 9.1  12.6  38.4 

C.  R.  LifeP 10  4  14.4  38.5 

Comparing  the  cost  of  fuel  per  engine  mile  on  the  roads  mentioned  for  the  five  year  period  ending 
1910  with  the  five  year  period  ending  1905,  a  general  increase  is  observed  which,  however,  varies  consider- 
ably on  different  roads,  as  shown  in  Fig.  5. 

Fuel  costs  per  engine  mile  are  of  little  value  when  used  as  a  basis  of  comparison  between  different 
roads   but  they  show  the  relative  costs  on  each  road  from  year  to  year. 

67 


I 


/or  6  >^ar  Fer/bt/  £/r<///y  /3/0. 


cf/frj-  2 


IVAB/{6/f 


/'£/ir/.CO. 


//Kor/r?: 


4  S  0 

I       I       I 


to 


a 


/* 


&f-A. 


^TtX-J/^ 


CBS-Q. 


C.J?MF. 


U^SSrfR/f  ^0AD5. 


eS/fKJ-   2 


/£ 


/f 


Fig.  4. 


COST  or  fm  Pf/?  fr/oMn/LE. 

fircent  /ncreaje  S  Veor  Fer/'od  M/ng /9/0 
Oyer  3  y^or  Feno^  Ending  1905. 


/J59Jr/P/R 


/VMf. 

CdrA. 

cB&a. 

CJfJ&F. 


(>8 


JO  20  SO 

I  I 


^£^/Sr//  /fO/iD5. 


fO 


20 


30 


40 


40 


SO 


50 


\ 


For  the  purpose  of  showing  fuel  costs  on  locomotives  on  a  more  equable  basis  than  the  engine  mile, 
the  work  unit  (average  tractive  force  nuiltiplied  by  total  engine  miles)  is  introduced  in  Fig.  6  and  following 
table,  showing  the  cost  on  this  basis  for  a  number  of  representative  eastern  and  western  roads  for  the  five 
year  period  ending  1910. 

Cost  of  Fuel 
Eastern  Roads  Per  Work  Unit 


Erie 

Penna.  Railroad . 
N.  Y.  Central   . . . 
D.  L.  &  W 

Wabash 

Lehigh  Valley . . .  . 

Western  Roads 

C.  &  A 

A.  T.  &S.  F 

C.  B.  &Q 

C.  R.  I.  &P 

C.  &N.  W 

C.  M.  &St.  P.... 


$2.1G 
3.23 
3.75 
3.76 
4.42 
5.10 

$3.37 
3.87 
5.52 
5.74 
6.01 
6.32 


The  cost  of  locomotive  fuel  per  work  unit  on  the  roads  mentioned  for  the  five  year  period  ending  1910, 
when  compared  with  the  cost  in  the  previous  four  year  period  does  not  show  a  general  increase  as  on  the 
locomotive  mile  basis.     Fig.  7  and  accompanying  table  show  this  clearly. 


Eastern  Roads 

Penna.  Railroad 

Lehigh  Valley 

Vi'abash 

N.  Y.  Central 

Erie 

D.  L.  &  W 

Western  Roads 

A.  T.  &S.  F 

C.  R.  I.  &  P.  (Average  3  Years  ending  1905). 

C.  M.  &St.  P 

C.  &  A 

C.B.&Q 

(\&  N.  W 


Increase 


1.6% 

8.4 
10.0 
25.6 
31.5 


Decrease 
10.0% 


10.4% 
0.7 


3.1% 
4,7 

8.2 
10.3 


The  Pennsylvania  Railroad  shows  a  marked  decrease  of  10  percent  in  the  cost  of  locomotive  fuel 
per  work  unit  for  the  five  year  period  ending  1910  as  compared  with  the  previous  four  year  period,  while 
the  D.  L.  &  W.  shows  an  increase  of  31.5  percent.  Of  the  western  roads  the  Atchison  decreased  10  percent 
and  the  C.  &  N.  W.  increased  10.3  percent  during  the  same  comparative  periods. 

The  cost  of  fuel  for  locomotives  is  largely  dependent  upon  the  geographical  location  of  the  railroad. 
Railroads  having  mileage  within  coal  mining  districts  pay  considerably  less  for  the  fuel  than  those  located 
at  a  distance  and  consequently  the  comparisons  should  not  be  on  a  cost  basis. 

It  is  interesting  to  note  the  variations  in  prices  paid  on  the  various  roads  as  rejwrted  to  the  Interstate 
Commerce  Commission  for  1910. 

Eastern  Roads  Cost  Per  Ton 


N.Y.N.  H.  &H 

N.  Y.  Central 

Lehigh  Valley .... 

D.  L.  &  W 

Erie 

Penna.  Railroad.  . 
Southern  Railway 
L.  &  N '. 


$2.93 
1.70 
1.60 
1.43 
1.37 
1.36 
1.16 
1.12 


70 


COJT  or  FUEL  PER  WORK  UNIT 
A  verag<z  S  /car  Pzhod  Ending  1^10 


PENN  RR 
N,YC£NT 

>AfAQASH 
LV. 


STEI^'N 


CaA 
A.TCr^jr 

C  BOQ 
C.RI.BP 


f 

QOa  D3 


WZSTEf^A/  RO/  D^ 


Fig.  6. 


Western  Roads 
Northern  Pacific. 
Great  Northern .  . 
C.  M.  &St.  P.... 

C.  &N.  W 

C.  R.  I.  &  P 

LTnion  Pacific  .  . .  . 


Cost  Per  Ton 
$2.76 
2.56 
2.24 
1.99 
1.98 
1.74 


An  example  of  the  extremes  in  locomotive  fuel  costs  per  locomotive  mile  is  furnished  by  the  Northern 
Pacific  and  the  B.  &  O.  for  the  year  1910,  as  follows: 

Loco.  Miles  Cost  of  Fuel 

Baltimore  &  Ohio 64,316,068  $5,406,759 

Northern  Pacific 35,810,364  7,690,831 

71 


11 


pp 


COST  OFF(/a  ffF  ^0/^KUm. 
Percent  /n crease  or  Decrease  far  J  )^or  Fer/ocf 


pern/?/?. 


CMJira, 


10  0  to 

I        I        I 


//YC/?f/IS£X 

ZO  30 


iyEST£P/r  po/m. 


/o 


ZO 


^Ayerofe  ofjy^c/:j  fhif/nf  t90S, 


Fig. 


72 


In  other  words,  the  Northern  Paeific  with  44.3  percent  less  locomotive  miles  spends  annually  42.3 
percent  more  for  locomotive  fuel  than  the  B.  &  0. 

The  cost  of  locomotive  fuel  varies  so  widely  in  the  various  parts  of  the  country  that  it  cannot  be  used 
to  any  satisfactory  degree  in  making  comparisons.  A  much  more  satisfactory  basis  is  the  amount  of  fuel 
consumed.  The  quality  may  vary,  but  not  to  the  extent  that  the  cost  varies.  Therefore  a  comparison 
of  tons  of  fuel  per  work  unit  should  be  of  great  value.  An  average  has  been  taken  for  the  years  UX)8,  MMH* 
and  1910  and  plotted  in  Fig.  8  as  per  following  table:  ^ 

Tons  of  Fuel  per  Work  Unit — Average  of  Three  Years  ending  1910. 

Locomotive  Fuel 

Eastern  Roads  Per  Work  Unit 

N.  Y.  Central 2. 19  tons 

Penna.  Railroad 2 .  33 

P.  C.  C.  &St.  L 2.53 

B.&O 2.62 

Phila.  &  Reading 2.94 

D.  L.  &  W 2.98 

Erie 3.05 

Lehigh  Valley 3.09 

Western  Roads 

A.  T.  &S.  F 2.4()tons 

Northern  Pacific 2 .  79 

C.R.  L&P 2.82 

C.  M.  &St.  P 3.09 

Union  Pacific 3. 14 

C.B.&Q 3.21 

Illinois  Central '.....  3.26 

C.&  N.  W 3.31 

The  extremes  on  the  eastern  roads  are  the  New  York  Central,  which  burned  2.19  tons  i^er  work 
unit,  and  the  Lehigh  Valley  with  3.09  tons.  There  is  not  as  wide  a  variation  on  the  western  roads  with 
the  Atchison  burning  2.46  tons  and  the  Northwestern  3.31  tons  per  work  unit. 

There  has  been  more  or  less  fluctuation  during  the  past  three  years  in  fuel  consumption  which  is 
illustrated  in  Fig.  9,  using  the  work  unit  as  a  basis.     The  arrangement  is  made  in  pairs  for  comparative 

purposes.  . 

1908  1909  1910 

Penna.  Railroad 2.361  tons    2.333  tons    2.280  tons 

P.  C.  C.&St.  L 2.444  2.556  2.587 

Erie 3.115  3.097  2.923 

Lehigh  Valley 3.189  3.092  2.979 

Phila.  &  Reading 2.943  2.899  2.976 

D.  L.  &W 2.983  2.916  3.039 

C.&N.  W 3.273  3.370  3.379 

C.  M.  &St.  P 3.007  3.094  3.178 

Union  Pacific 3.101  3.151  3.168 

Northern  Pacific 2.971  2.732  2.656 

Thus  the  Pennsylvania  Railroad  shows  a  substantial  decrease  from  1908  to  1910  while  the  Pan 
Handle  shows  an  increase.  The  Erie  and  Lehigh  Valley  show  substantial  decreases.  The  Reailing.  an«l 
Lackawanna  fluctuate  during  the  three  year  period.  The  Northwestern  and  St.  Paul  show  increa.«^\-^. 
while  the  Union  Pacific  shows  an  increase,  the  Northern  Pacific  shows  a  decided  decrease. 

The  comparisons  shown  are  upon  the  basis  of  cost  and  also  the  basis  of  weight.  Eitlier  one  is  un- 
satisfactory as  no  account  is  taken  of  the  actual  heat  value  of  the  fuel.  No  data  is  available  giving  the  heat 
units  in  the  various  kinds  of  fuel,  and  it  is  to  be  hoped  that  the  Interstate  Commerce  Commission  will 

endeavor  to  obtain  this  information. 

73 


i, 


'^ 


Tons  orri/a  per  work  uh/t. 

/Jyeroge  of  3  Yeans  fnc/inf  /9/0. 


Tons    as 


//rc£/Yr 


c./i.*<sr/> 
/ucr/fr. 


Tvrts    as 


/.o 


xs 


zo 


I       1       I 


W£SrC^/f /iiVilXS. 
I 


M  I.S 

Fia.  8. 


I 


74 


es 


so 


^^ 


Sj9 


/90e, /909J9/0, 


TOm    2.2 


/9t0 

/90d 

/s/o 


fR/£. 


L.^ 


f90S 

PHILAjS^R,  t909 

/9/0 


/sad 
DLiSr.W     m. 

/9/0 

/90a 

c&niv:  '909 

/9f0 

1906 
CyHdhF/?   I909\ 

/9/0 

/90d 

u/rmm:.  /909\ 

/9/0 

t9C6\ 

jraR,fvic.  /909\ 

/9/0 

7V/fSt? 


32 


3.4^ 


Sf 


76 


Having  thus  treated  about  three-fourths  of  the  transportation  expenses,  it  is  found  that  the  remaining 
one-fourth  is  divided  as  follows: 

Claims,  Damages  and  Miscellaneous  Expenses 11% 

Engine  House  Expenses  and  Engine  Supplies 6% 

Train  Supplies  and  Expenses 4% 

Supervision 3% 

The  first  item,  claims,  etc.,  while  aggregating  1 1  percent  of  the  total,  includes  eighteen  miscellaneous 
items  so  diversified  as  to  afford  no  adequate  unit  of  comparison  while  the  last  item,  that  of  supervision, 
is  largely  a  fixed  charge  having  no  direct  relation  to  the  business  handled. 

Engine  house  expenses  covering  the  attendance  at  terminals  and  the  cost  of  lubricants  and  supplies 
furnished  locomotives,  absorb  6  percent  of  the  total  cost  of  conducting  transportation,  while  the  expenses 
incidental  to  the  handling  and  supplying  of  trains  at  terminals  included  in  the  item  "train  supplies  and 
expenses"  consume  4  percent  of  the  total. 

Engine  house  expenses  and  engine  supplies  are  dependent  entirely  upon  the  size  and  service  rendered 
the  locomotives,  and  consequently  the  locomotive  work  unit  is  the  equable  basis  for  these  two  items.  A 
statement  of  the  engine  house  expenses  per  locomotive  work  unit  for  representative  roads,  as  shown  in  Fig. 

10,  for  the  fiscal  year  1910,  is  as  follows: 

Engine  House  Expense 

Railroad  IVr  Work  Unit 

l*enna.  Railroad $0. 73 

N.  Y.  Central .83 

A.  T.  &S.  F .87 

Phila.  &  Reading .87 

Northern  Pacific .87 

Southern  Pacific .92 

Union  Pacific .94 

C.B.&Q .96 

Erie 1.04 

Illinois  Central 1 .  07 

C.  &N.  W 1.12 

Missouri  Pacific 1.18 

C.  M.  &St.  P 1.29 

The  coat  of  engine  supplies  per  locomotive  work  unit  for  various  large  roads  is  illustrated  in  Fig.  11, 

as  follows: 

Engine  Supplies 

Railroad  Per  Work  Unit 

A.  T.  &  S.  F 6.57  Cents 

L.  S.  &  M.  S 7.41 

Illinois  Central 8.62 

Great  Northern 8.65 

C.  &  N.  W •  8.93 

B.  &() 9.07 

Erie 9.61 

Penna.  Railroad 9.93 

P.  C.  C.  &St.  L 10.18 

C.  B.  <feQ 10.25 

D.  L.  &  W 10  35 

Union  Pacific 10.62 

C.  M.  &St.  P 13.20 

Southern  Pacific 13 .  40 

Missouri  Pacific 13 .  65 

Phila.  &  Reading 14.62 

Train  supplies  and  expenses  are  not  dependent  on  the  number  of  train  miles,  but  upon  the  car  mileage, 
but  inasmuch  as  the  expense  of  passenger  equipment  is  greater  than  that  of  freight  equipment,  the  compari- 
son should  be  upon  the  basis  of  passenger  car  miles  and  the  freight  car  miles  separately. 

7« 


Et16lfimU6E  EXPEHSES  EER  WORKUm. 

m. 


C£nT6     20 


I 


( 


nrcE/rr. 

PH/LRA-R. 

30U.mc. 

C.BiPQ. 
£R/£. 

/u.ce/yr. 

C.S-/Y.tY. 

mm:, 
crn^p. 


cenrs  zo 


Fig.  10. 


77 


ENGINE.  SUPPLIES  PER  WORK  UNIT 

19/0 


Cents 


-?. 


iLL.C£N7, 
aTNOR 

ERIE 
RENN.  R  R. 
PCC&^tL. 

DLesW. 
UNION  PAC. 

SOU  PAC 

MOPAC 

PHILA.oR. 


^a 


/z. 


/-f 


C^nts  -».  ^.  «.  41  /^.  /a.  /^. 

Fig.  11. 
Unfortunately,  the  records  of  the  Interstate  Commerce  Commission  do  not  provide  for  the  division 
of  these  expenses  as  between  passenger  and  freight  so  that  separate  comparisons  are  not  available. 

The  comparison  of  these  expenses  upon  the  basis  of  the  total  car  miles  (freight  and  passenger  together) 
is  illustrated  in  Fig.  12  for  the  following  railroads,  but  deductions  upon  this  Imsis  are  far  from  satisfactory. 

Train  Supplies 
And  Expenses  Per 
Railroad  '  1,000  Car  Miles 


D.  L.  &  W 

C.&N.  W 

N.  Y.  Central  . 
lUinois  Central .  . 
P.  C.  C.  &  St.  L. 
Penna.  Railroad. 
A.  T.  &S.  F... 

C.  B.  &Q 

Southern  Pacific . 
Northern  Pacific 
Union  Pacific .  . . 
C.R.  I.  &P 


$1.32 
1.45 
1.52 
1.58 
1.58 
1.60 
1.65 
1.73 
1.76 
1.79 
1.87 
2.05 


78 


Per  1000  Cor  n/l(Ts. 
/9/0. 


B 


ff.rcE/ir 


ILL  CE/YT. 


eccs^m. 


pEm,/?p. 


AT&SP 


cB&a, 


JOi/P/IC 


WPPK. 


(//r/0// fi^c 


CRiSrP 


s 


.s 


/^ 


/6 


2,0 


/o 


IS 


2.0 


Fig.  12. 


TRAFFIC  EXPENSE  AND  GENERAL  EXPENSE. 

The  traffic  expenses,  together  with  the  general  expenses  of  a  railroad,  constitute  approximately  7 
percent  of  the  total  operating  expenses,  and  are  largely  fixed  charges. 

Inasmuch  as  they  bear  no  direct  relation  to  the  train  mileage,  engine  mileage,  car  mileage,  traffic 
density,  geographical  or  topographical  conditions,  these  expenses  are  not  dependent  upon  the  discn'tion 
of  the  operating  officials  and  any  study  with  reference  to  a  comparative  unit  would  be  of  doubtful  value 
and  is  not  given  consideration. 


7» 


I 

.■l 

i 


Railroad  Operating  Costs. 


(^HAPTER   VI. 


CONCLUSION. 

The  studies  covering  railroad  operation  costs  presented  herewith  are  not  put  forth  in  criticism  of 
the  managements  of  the  roads,  but  are  intended  to  indicate  the  necessity  for  a  thorough  revision  of  existing 
practice  in  the  compilation  of  comparative  units  of  operating  performance. 

Summed  up  briefiy  the  principal  points  elucidated  are : 

(1)  There  is  no  direct  relation  between  the  capitalization  of  a  railroad, 
its  gross  earnings,  and  the  density  of  population  of  the  country  traversed  by  ite 
lines. 

(2)  The  employment  of  the  "operating  ratio,"  so  called,  (percentage  of 
operating  expenses  to  gross  earnings).,  in  the  study  of  performances  is  of  little 
value  and,  in  making  comparisons  between  different  roads,  it  is  deceptive  and 
misleading. 

(3)  There  is  no  universal  or  general  unit  on  which  to  base  comparisons 
of  each  of  the  great  divisions  of  operating  expense.  A  separate  unit  is  required 
for  each  considerable  item  of  expense. 

(4)  On  many  items,  comparisons,  to  be  of  value,  must  be  made  through 
a  considerable  period  of  years. 

(5)  Operating  expenses  are  influenced  by  what  may  be  called  "external " 
operating  conditions — topography,  climate,  proximity  of  fuel  supply,  etc. 

(6)  There  is  an  urgent  need  that  the  Interstate  Commerce  Commission 
require  the  railroads  to  report  more  complete  data;  that  it  pubhsh  much  more 
extensive  abstracts  of  the  information  received  by  it;  and  that  such  publications 
be  available  at  an  earlier  date  than  is  the  custom  in  the  case  of  the  present  pub- 
lished annuals. 

Among  other  data  which  should  be  given  in  the  reports, 
the  following  are  of  prime  importance : 

(a)  Gross  tons  (freight  and  passenger)  hauled  one  mile. 

(b)  Separation  between  labor  and  material,  in  statements  of  mainte- 
nance expense. 

(c)  Further  segregation  of  expenses  of  maintenance  and  of  transportation 
of  freight  and  passengers. 

(d)  Allocation  of  expenses  of  maintenance  and  of  transportation  between 
•    main  lines  and  branch  lines. 

The  writer  has  not  attempted  to  explain  the  variations  in  performance  on  the  diflferent  railromU. 
A  comprehensive  study  of  the  entire  situation  and  a  thorough  analysis  of  all  conditions  would  Ix'  necessar> 
before  an  opinion  could  be  expressed  upon  the  efficiency  of  their  management — for  instance:  the  weight 
of  rail  and  design  of  fastenings,  the  style  and  depth  of  ballast,  the  quality  and  treatment  of  ties  and  timber 
and  the  design  of  bridges,  together  with  the  methods  of  administration  and  of  execution;  all  these  enter 
into  the  cost  of  maintenance  of  way  and  structures. 


The  condition  in  which  the  roadway  is  kept  makes  itself  evident  not  alone  in  the  expense  of  main- 
tenance of  way  and  structures,  but  also  in  the  cost  of  maintenance  of  locomotives  and  other  rolling  stock. 
As  the  cost  of  locomotive  maintenance  is  but  two-thirds  of  the  expenditure  for  locomotive  fuel,  compari- 
sons made  for  the  purpose  of  determining  the  relative  values  of  compound  and  single  expansion  locomotives 
as  power  factors  must  be  carried  beyond  the  cost  of  repairs.  The  sizes  of  locomotives;  the  types  of  con- 
struction and  the  capacities  of  rolling  stock;  the  policy  of  the  management  in  respect  of  condemnations 
and  replacements;   each  of  these  subjects  is  a  factor  of  the  greatest  weight  in  the  comparison  of  costs  of 

maintaining  equipment. 

The  single  item  of  total  tonnage  per  train  is  a  prominent,  if  not  the  predominant,  factor  in  the  cost 
of  conducting  transportation.  But,  with  heavy  trains  and  low  transportation  cost,  goes  high  cost  of  main- 
taining the  track  in  line  and  surface  under  the  severe  pounding  of  the  heavy  locomotives  that  haul  the 
long  trains;   while  gravity  yards,  that  facilitate  the  dispatching  of  traffic,  materially  increases  the  cost  of 

maintaining  rolling  stock. 

Indeed,  the  greater  number  of  divisions  and  subdivisions  of  the  operating  expenses  are  so  inter- 
dependent one  upon  another  that  any  conclusion  based  upon  an  individual  item  is  apt  to  be  not  merely 
useless,  but  actually  misleading.  Not  the  examination  of  one  item,  but  a  comprehensive  analysis  of  all 
influencing  and  contingent  factors,  must  be  made  before  reliable  results  can  be  had. 

Mechanics  is  the  science  that  treats  of  the  action  of  force  upon  bodies.  Definite,  positive  laws  of 
force  have  long  been  established  and  put  into  practice.  The  laws  governing  the  use  of  steam,  as  a  force 
are  well  known.  The  thermal  efficiency  of  steam  at  best  is  very  low;  the  best  record  for  multi-compound 
condensing  engines  is  only  21  percent,  while  the  average  steam  locomotive  has  a  thermal  efficiency  of  less 
than  10  percent,  oftentimes  but  6  percent.  It  is  an  axiom,  in  marine  and  stationary  practice,  that  there  is 
great  economy  in  the  use  of  compound  engines.  In  marine  engineering  there  is  no  question  of  compounding 
or  not  compounding  steam;  the  sole  inquiry  there,  is:  "how  many  times  can  we  compound?"  But  rail- 
road mechanical  engineers  are  still  undecided.  To  be  sure,  some  roads  use  compound  locomotives,  but 
there  has  been  no  uniform  or  concentrated  effort  made  to  decide  the  question. 

In  the  operation  of  American  railways,  the  labor  cost  is  by  far  the  larger  factor  and  consistent  efforts 
should  be  directed  toward  any  means  whereby  the  efficiency  of  the  individual  can  be  increased.  This  matter 
has  apparently  been  lost  sight  of  by  the  majority  of  operating  officials. 

The  members  of  the  Maintenance  of  Way  Association,  of  the  Master  Mechanics',  and  of  the  Master 
Car  Builders'  Association,  are  in  direct  control  of  60  percent  of  the  total  operating  expenses  of  the  railroads 
they  represent,  yet  the  proceedings  of  their  meetings  contain  no  mention  of  the  labor  problem.  Their 
entire  attention  is  directed  toward  the  subject  of  materials.  If  they  in  this  have  followed  the  example 
of  their  European  contemporaries,  they  have  failed  to  appreciate  that  the  cost  of  material  is  much  higher 
than  of  labor  on  European  railroads— directly  the  opposite  of  the  conditions  prevailing  here.  An  increase 
of  10  percent  in  the  rates  of  pay  of  enginemen,  yard  and  trainmen  will  increase  the  cost  of  conducting  trans- 
portation approximately  3.5  percent— an  expense  equivalent  to  a  25  percent  increase  in  the  total  main- 
tenance of  locomotives. 

An  enormously  effective  and  valuable  work  could  be  done  through  the  medium  of  these  Associations 
in  the  standardizing  of  equipment.  There  is  no  reason  why,  given  reasonable  time,  a  movement  for  the 
standardization  of  equipment  could  be  carried  to  its  logical  conclusion,  but  for  some  inscrutable  reason 
the  attention  of  members  has  been  directed  only  toward  unit  designs  for  small  parts.  In  some  instances 
at  least  this  standardization  of  parts  has  been  due  to  the  efforts  of  manufacturers  of  supplies  rather  than 

the  members  of  the  Association. 

The  genius  of  Harriman  recognized  the  tremendous  advantage  of  standardizing  the  parts  of  loco- 
motives and  rolling  stock  in  order  to  secure  low  maintenance  costs,  although  he  seemed  entirely  to  overlook 
the  economies  to  be  attained  through  increased  efficiency  of  labor.  With  the  Atchison  the  situation  is 
reversed,  for,  while  their  shops  are  undoubtedly  operating  at  a  high  efficiency,  the  numerous  kinds  of  mate- 
rials and  nmltitudinous  patterns  of  parts  required  to  maintain  over  150  different  classes  of  locomotives 
result  in  direct  and  avoidable  waste  of  money. 

It  seems  as  if  the  subjects  now  up  for  discussion  before  the  various  Associations  of  Railway  Officials 
are  inconsequential  when  compared  with  the  more  important  problems  that  have  been  overlooked. 

82 


Date  Due 

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Railroad  Operating  Costs 

Arranged  to  include  the  operations  of  1911 


^ 


A  Continuation  of  Studies  in  Operating  Costs  of  the 
Leading  American  Railroads 

BY 

SUFFERN    &    SON 


\ 


•  •  •  • 

•  •   • 


'«-  **'  «••  •• 


• «  • « 


* .  -    ■  ■  ■ 


• » » 


•  •  <v 

•  •  • 


'» -      »  ' 


XT'1         •      *'      •    {  I  ^  *  *        •    •      *    * 


NEW     YORK 

SUFFERN   &   SON 

1912 


Gvjr«r| 


SCHOOL  ar 

BUSINESS 
LIBRAhy 


Copyright.  1912 

by 

SUFFERN  &  SON 


PRICE   «2.00    pen   COPY 


•        •         *  •         • 


3  5  3  0 .1 


.X 


IP 
or 


J 


WHEN  we  published  some  eight  months  ago  the  first  volume  of  Railroad 
Operating  Costs,  we  were  not  certain  whether  a  treatise  of  this  kind, 
having  to  do  with  highly  technical  matter,  would  be  of  sufficient  interest 
to  justify  its  publication.  The  interest  which  it  seemed  to  excite  among  some  of 
the  largest  and  best  managed  railway  systems;  the  appreciative  comments  which  it 
received  and  the  fact  that  in  some  instances  its  suggestions  were  adopted,  led  us  to 
believe  that  the  studies  embodied  in  the  first  volume  should  be  extended  and  enlarged. 
This  seemed  specially  desirable  as  practically  the  only  criticism  received  was  that 
certain  roads  had  been  omitted  from  our  study  and  review. 

Such  a  criticism  is  eminently  just  and  under  it  the  authors  of  this  compilation 
must  lie  for  some  time,  as  it  is  manifestly  impossible  to  complete  in  a  short  time 
such  extensive  studies  covering  so  many  comparisons  of  various  items  of  costs  and 
to  include  in  these  comparisons  even  all  the  larger  roads.  Nevertheless,  the  work 
is  progressive  and  is  progressing. 

In  presenting  this,  the  second  volume,  the  authors  feel  that  they  can  claim  that 
they  have  advanced  somewhat  along  the  paths  marked  out.  The  text  is  recrystallized 
from  a  portion  of  the  original  material,  strengthened  and  amplified  by  a  great 
store  of  new  matter,  the  result  of  close  study  since  the  first  edition  was  prepared; 
also  the  arrangement  of  matter  has  been  materially  changed  in  several  respects. 

The  highly  important  classification  of  Maintenance  of  Equipment  is  treated  of 
in  four  chapters  instead  of  in  one,  as  in  the  first  volume.  The  three  additional 
chapters  on  Freight  Car  Maintenance,  Locomotive  Maintenance  and  Passenger  Car 
Maintenance  embody  the  results  of  very  careful  research,  and  it  is  believed  that  the 
information  thus  presented  will  be  of  high  value,  especially  as  the  charts  illustrating 
Locomotive  performance  for  the  four  years  1908-1911  (inclusive)  cover  thirty-six 
leading  roads,  many  of  which  were  not  mentioned  in  the  first  volume. .  Five  charts 
reflecting  Passenger  Car  performance  on  forty  leading  roads  are  shown  in  place  of 
two  charts  of  fourteen  roads  in  the  first  volume. 

In  the  chapter  of  Maintenance  of  Way  and  Structures,  a  new  and  important 
unit  of  cost  determination  has  been  introduced,  viz.,  the  "Locomotive  Tractive 
Mile,"  which  is  believed  to  be  a  far  more  logical  unit  than  that  which  has  been 
employed  previously. 

The  eighth  chapter  on  Fuel  Costs  is  entirely  new.  The  text  contains  much 
of  what  is  believed  to  be  wholly  original  information  with  respect  to  locomotive 
performance  under  a  great  variety  of  conditions  and  according  to  various  types 
of  structure  and  classifications.  It  is  not  known  that  such  records  have  been 
produced  before  and  the  information  therein  presented  is  at  once  important  and 
progressive.  Those  who  are  interested  in  the  conservation  of  our  natural  resources 
will  be  pleased  to  observe  in  what  manner  and  to  what  degree  better  locomotive 
performance  will  serve  to  reduce  coal  consumption,  while  the  facts  adduced  will  be 
of  interest  to  the  builders  of  locomotives  and  superheating  devices.  This  chapter 
is  illustrated  by  eleven  charts  wholly  original  in  their  character  and  subject  matter. 

The  whole  volume  is  arranged  to  include  the  operations  of  1911,  thus  bringing 
the  charts  and  tabulations  to  date. 

SUFFERN  &  SON. 
New  Yokk,  May,  1912. 


CONTENTS 


Chapter  I.— Comments  on  information  furnished  by  Interstate  Commerce 
Commission.  Total  capitalization  per  mile  of  road  operated.  Gross  earnings  per 
mile  of  road.  Volume  and  class  of  traffic  compared.  Importance  of  industrial 
development.  Population  per  mile  of  road  by  counties.  Density  of  traffic  (freight 
and  passenger)  per  mile  of  road.  Ratios  of  operating  expenses  to  gross  earnings. 
Graphical  illustrations  for  the  leading  Railroads  are:  Total  capitalization  per  mile 
of  road  operated  1911.  Gross  earnings  per  mile  of  road  operated  1911.  Population 
per  mile  of  road  by  counties  1910.  Density  of  traffic  (freight)  100,000  revenue  ton- 
miles  per  mile  of  road,  1911.  Density  of  traffic  (passenger)  1,000  passenger  miles 
per  mile  of  road  1911.  Operating  ratios-per  cent,  operating  expenses  to  gross  earn- 
ings 1911— Ratios  of  accounts  to  total  operating  expenses,  in  per  cent,  of  total. 

Chapter  II.— Maintenance  of  way  and  structures.  Grades.  Curvatures. 
Clearances.  Bridges  and  tracks.  Relation  of  expenditures  to  traffic  conditions. 
Comparison  of  one  eastern  and  one  western  system.  Expenditures  affected  by 
geograpliical  conditions,  terminal  costs,  and  density  of  traffic.  Maintenance  costs 
per^locomotive  tractive  mile.  Graphical  illustrations  accompanying  are:  Relation 
of  traffic  to  maintenance  of  way  costs  on  representative  eastern  and  western  roads. 
Percentage  maintenance  of  way  and  structures  to  total  operating  expense.  Main- 
tenance of  way  and  structures  per  mile  of  road.  Maintenance  of  way  and  structures 
per  locomotive  tractive  mile. 

Chapter  III.— Maintenance  of  Equipment.    Ratio  to  total  operating  expense. 
Reasons  for  increase  in  cost  of  maintenance  of  equipment.     Improved  efficiency 
reflected  in  greater  costs.    Tractive  force  of  locomotives.     Capacity  of  freight  cars. 
Difference  in  size  of  locomotives  hauling  same  train  on  level  and  grade.    Locomotive 
maintenance.    Extremes  of  maintenance  costs  compared.    Character  of  traffic  afTect- 
incT  costs.     Fair  and  unfair  units  for  comparison  purposes.     Long  distance  hauls. 
La1)or  conditions  east  and  west  of  Chicago.     Graphical  illustrations  accompanying 
are:  Ratio  of  maintenance  equipment  to  total  operating  expense.    Per  cent,  increase 
of  maintenance  of  equipment  to  total  operating  expense  over  year  1901.     Capacity 
of  freight  cars;  average  capacity  in  tons;  per  cent,  increase  with  1902.     Loco- 
motive tractive  force— Graphical  representation  showing  difference  in  size  of  loco- 
motive hauling  same  train  on  level  and  on  grade.    Cost  of  freight  locomotive  repairs 
and  fuel  on  level  and  mountainous  country  for  12  months  period— average  rate  per 
hour  paid  various  employees  on  roads  east  and  west  of  Chicago  1910.    Maintenance 
of  equipment  subdivision  of  expense  1911. 

Chapter  IV.— Freight  car  maintenance.  Relative  importance  of  this  item  of 
costs  Fluctuations  therein  as  shown  by  relative  expenditures  of  roads.  Compari- 
sons with  locomotive  maintenance.     Maintenance  of  freight  cars  per  freight  car 


owned.  Average  capacity  of  freight  cars  owned.  Miles  per  freight  car  owned. 
Freight  cars  owned  per  mile  of  track.  Freight  traffic  density  in  revenue  ton-miles 
per  mile  of  track.  Maintenance  per  freight  car  per  1,000  revenue  ton  miles.  Freight 
car  density  in  freight  car  miles  per  mile  of  track.  Maintenance  of  fright  cars  per 
1,000  freight  car  miles.  Data  showing  average  capacity  on  40  roads  for  1911.  Use- 
lessness  of  comparisons  on  units  of  freight  cars  owned.  Empty  car  mileage.  Stand- 
ardization of  equipment.  Lack  of  information  furnished  Interstate  Commerce  Com- 
mission. Interchange  of  cars.  Graphical  illustrations  accompanying  are:  Main- 
tenance of  freight  cars  per  freight  car  owned  1911.  Average  capacity  of  freight  cars 
1911.  Miles  per  freight  car  owned  1911.  Number  of  freight  cars  owned  per  mile  of 
total  track  1911.  Freight  traffic  density  100,000  revenue  ton-miles  per  mile  of 
track  1911.  Maintenance  of  freight  cars  per  1,000  revenue-ton  miles  1911.  Freight 
car  density  10,000  freight  car  miles  per  mile  of  track  1911.  Maintenance  of  freight 
cars  per  1,000  freight  car  miles  1911. 

Chapter  V. — Locomotive  maintenance,  repairs  and  renewals  per  "locomotive" 
per  "locomotive  mile."  Increase  in  tractive  force  of  locomotives  in  nine  years. 
Repairs  and  renewals  ])or  "ton  tractive  force"  per  tractive  mile.  Comparisons  on 
above  basis  for  twelve  roads.  Average  tractive  force  of  locomotives,  "miles"  per 
"locomotive  owned."  Maintenance  per  "locomotive  mile"  per  "tractive  mile"  on 
thirty-nine  roads  for  four  years. 

Graphical  illustrations  accompanying  are :  Repairs  and  renewals  of  locomotives 
per  locomotive,  average  of  5  years  ending  1910,  compared  with  5  years  ending  1905. 
Repairs  and  renewals  of  locomotives  per  locomotive  mile,  for  same  periods.  Repairs 
and  renewals  of  locomotives  per  ton  tractive  force,  5  years  ending  1910.  Repairs 
and  renewals  of  locomotives  per  ton  tractive  force,  average  of  5  years  ending  1910, 
compared  with  4  years  ending  1905,  Repairs  and  renewals  of  locomotives  per  work 
unit  average  of  5  years  ending  1910 — same  compared  with  4  years  ending  1905. 
Maintenance  of  locomotives  per  locomotive  average  tractive  force  of  locomotives. 
Miles  per  total  locomotive.  Maintenance  of  locomotives  per  locomotive  mile.  Main- 
tenance per  locomotive  per  tractive  mile. 

Chapter  VI. — Passenger  car  maintenance.  Maintenance  of  passenger  cars 
per  car.  Maintenance  per  passenger  cars  owned  per  mile.  Maintenance  per  1,000 
passenger  car  miles.  Comparisons  of  several  roads  on  above  basis.  Maintenance  per 
gross  ton-mile.  Passenger  cars  owned  per  100  miles  of  track.  Passenger  traffic 
density  in  1,000  passenger  miles  per  mile  of  track.  Comparisons  between  parallel 
competing  roads.  Interchange  of  passenger  cars.  Shop  machinery  and  tools. 
Maintenance  of  shop  machinery  and  tools  per  locomotive  tractive  mile.  Graphical 
illustrations  accompanying"  are :  Maintenance  of  passenger  cars  per  passenger  car 
1911.  Miles  per  passenger  car  owned  1911.  Maintenance  of  passenger  cars  per 
1,000  passenger  car  miles  1911.  Number  of  passenger  cars  owned  per  100  miles  of 
track  1911.  Passenger  traffic  density  1,000  passenger  miles  per  mile  of  track  1911. 
Maintenance  of  shop  machinery  and  tools  per  locomotive  tractive  mile  1911. 


Chapter  VII. — Transportation  expenses.    Ratios  of  conducting  transportation 
and  maintenance  of  property  to  total  operating  expense.     Percentage  of  transporta- 


tion  expenses  to  operating  expenses.  Kelation  of  transportation  expenses  to  business 
handled.  Cost  of  conducting  transportation  per  1,000  train  miles.  Division  of  con- 
ducting transportation  expenses  on  large  roads.  Principal  items.  Supervision  train 
supplies  and  expenses,  engine  supplies  and  expenses,  claims,  damages  and  miscel- 
laneous expenses,  stationmen  and  despatchers,  locomotive  fuel,  enginemen,  yard  and 
trainmen's  wages.  Engine  house  expense  per  locomotive  tractive  mile.  Locomotive 
lubricants  per  tractive  mile.  Locomotive  supplies  per  tractive  mile.  Traffic  expense 
and  general  expense.  Graphical  illustrations  accompanying  are:  Ratio  of  main- 
tenance of  property  and  conducting  transportation  to  total  operating  expense.  Per- 
centages of  transportation  expenses  to  operating  expenses  1911.  Cost  of  conducting 
transportation  per  1,000  train  miles  1911.  Division  of  conducting  transportation 
expenses  on  large  roads.  Engine  house  expense  per  tractive  mile  1911.  Locomotive 
lubricants  per  tractive  mile  1911.    Locomotive  supplies  for  tractive  mile  1911. 


Chapter  VIII. — Fuel.  Cost  and  amount  of  fuel  consumed  by  American  rail- 
roads. Increasing  consumption  and  increased  cost  per  ton.  Percentage  of  available 
heat  absorbed  and  percentage  of  waste.  Enormous  losses  in  locomotive  consumption. 
Directions  in  which  economy  may  be  secured.  Necessity  of  supervision  of  heat 
losses.  Closer  inspection  of  fuel  purchased.  Increase  of  thermal  efficiency  of  loco- 
motives in  relation  to  saving  in  fuel.  Comparison  of  tests  between  single  expansion 
and  compound  locomotives.  Cost  of  fuel  per  "engine  mile"  and  per  "tractive  mile" 
compared.  Cost  per  ton.  Cost  per  work  unit.  Comparisons  between  parallel  or 
competing  roads.  Extremes  of  fuel  costs.  Influences  of  traffic  conditions  and 
physical  characteristics  on  cost  of  fuel  consumption.  Savings  in  fuel  possible 
through  the  use  of  compound  locomotives,  superheaters,  mechanical  drafts.  Mallet 
type,  etc.  Comparisons  of  locomotive  performance  of  several  types  under  varying 
conditions.  Costs  of  locomotive  repairs  of  single  expansion  and  compound  types  com- 
pared with  relative  fuel  costs.  Graphical  illustrations  accompanying  are:  Cost  of 
fuel  per  engine  mile  for  5-year  period  ending  1910,  on  twelve  roads.  Cost  of  fuel 
per  engine  mile  per  cent  increase  5-year  period  ending  1910,  over  5-3'ear  period  end- 
ing 1905,  on  twelve  roads.  Cost  of  fuel  per  work  unit;  average  5-year  period  ending 
1910,  twelve  roads.  Cost  of  fuel  per  work  unit;  per  cent  increase  or  decrease  for 
5-year  period  ending  1910,  compared  with  4-year  period  ending  1905.  Tons  of  fuel 
per  tractive  mile,  36  roads.  Tons  of  fuel  per  tractive  mile,  locomotive  maintenance 
per  tractive  mile,  tons  freight  fuel  per  40,000  revenue-ton  miles,  for  two  roads  oper- 
ating in  similar  territory,  compared  for  1910  and  1911.  Similar  comparison  of  two 
other  roads  for  same  periods.  Same  roads  compared  for  same  periods  for  miles  per 
freight  locomotive,  miles  per  total  locomotive,  and  1,000  revenue-ton  miles  per 
freight  locomotive. 


Railroad   Operating   Costs 


CHAPTER  I. 


Every  railroad  in  the  United  States  that  handles  any  interstate  traffic  is  re- 
quired to  file  annual  reports  with  the  Interstate  Commerce  Commission,  on  uniform 
blanks  prepared  by  its  statistician  and  bound  in  book  form.  These  annual  reports 
present  many  figures,  of  various  kinds :  figures  from  the  financial  accounts ;  statis- 
tics of  performance;  information  in  respect  of  the  more  important  sorts  of  physical 
properties ;  and  traffic  data,  highly  condensed ;  but  a  great  many  things  are  missing 
which  it  is  necessary  for  a  railroad  operator  or  analyst  to  know  in  order  to  utilize 
these  figures  in  making  accurate  comparisons  between  different  railroads — compari- 
sons that  will  instruct,  not  mislead  him.  He  requires  to  have  information  from 
other  sources;  an  intimate  knowledge  of  local  conditions — information  general  and 
special — to  enable  him  to  make  judicious  comparisons,  draw  trustworthy  inferences 
and  reach  sound  conclusions. 

The  original  reports  are  available  for  examination  in  the  offices  of  the  Commis- 
sion at  Washington,  but  few  printed  copies  are  made  and  only  a  very  few  of  the  most 
general  items  are  extracted  for  publication  in  the  Commission's  statistical  reports. 
Indeed,  the  paucity  of  useful  information  to  be  gleaned  from  any  published  reports 
of  railroad  operations  and  affairs  becomes  painfully  evident  to  the  investigator  seek- 
ing to  make  comparisons  that  will  be  valuable  to  practical  railroad  operators. 

With  a  few  exceptions — as  the  Union-Southern  Pacific  System,  whose  reports 
are  models  of  real  information,  unequalled  in  English-speaking  countries — annual 
reports  to  stockholders  are  of  little  use  to  any  but  financial  men  (and  often  of  doubt- 
ful value  to  these),  while  the  summaries  appearing  in  the  various  financial  manuals 
are  almost  devoid  of  information  in  respect  of  operating  conditions. 

If  we  turn  to  the  bulky  statistical  tome  issued  annually  by  the  Interstate  Com- 
merce Commission,  we  find  a  thousand  closely  printed  pages  filled  with  tables  of 
almost  useless  data  and  summaries,  while  the  information  absolutely  essential  to  any 
clear  picture  of  physical  and  operating  conditions  on  the  several  railway  properties 
in  the  United  States  is  conspicuous  by  its  absence,  notwithstanding  an  immense 
amount  of  information  of  great  value  is  sleeping  in  these  reports  made  by  the  roads 
to  the  Commission  from  which  this  volume  is  derived. 

Comparison  of  operating  costs  have  lately  received  such  wide-spread  attention 
on  the  part  of  railroad  men  .and  of  the  public  and  the  National  and  State  govern- 
ments as  well,  that  an  analysis  of  some  of  the  facts  which  may  be  learned  from  the 
detailed  annual  reports  reposing  on  the  Commission's  shelves  appears  to  be  well  worth 
the  making  and,  perhaps,  of  some  immediate  value.  The  writer  presents  herewith 
such  a  study,  based  in  the  main  upon  the  railroads'  annual  reports  to  the  Interstate 
Commerce  Commission  (amplified  somewhat  by  information  obtained  from  the 
Census  Bureau  and  from  various  railroad  officials)  in  respect  of  earnings,  operating 
expenses,  physical  characteristics  and  operating  conditions  of  the  representative  rail- 
roads of  the  country,  but  without  special  reference  to  rates  or  managements. 


8 


RAILUOAD  OPERATING  COSTS 


Previous  to  July  1,  1907,  there  was  supposed  to  be  a  definite  system  of  compiling 
railroad  accounts  and  statistics,  but,  as  each  railroad  interpreted  the  Commission's 
classifications  of  separating  expenses,  etc.,  in  accordance  with  its  own  views,  reliable 
comparisons  of  railway  statistics  covering  earnings,  capitalization,  cost  of  operation, 
etc.,  were  not  to  be  made. 

The  Hepburn  Act  of  1906  gave  the  Interstate  Coumierce  Conunlssion  complete 
authority  and  control  over  railway  accounts  and  the  Comnjission  after  long  and 
tactful  negotiations  with  the  accounting  officers  of  the  roads  promulgated  a  revised 
series  of  accounting  rules  and  classifications  of  accounts,  and  since  July  1,  1907,  the 
railroads  have  been  keeping  their  records  and  submitting  their  reports  accordingly. 
While  these  rules  permit  far  greater  variation  from  a  uniform  standard  than  is 
generally  understood,  their  chief  defect,  from  the  standpoint  of  this  paper,  arises 
out  of  lack  of  operating  details  and  units— a  defect  due  to  the  fact  that  the  classi- 
fications were  prepared  by  accountants  who  were  less  familiar  with  operating  than 
with  financial  records. 

For  instance,  among  all  of  the  voluminous  figures  submitted  by  the  various 
railroads,  the  Interstate  Commerce-  Commission  reports  give  no  place  to  the  state- 
ment of  the  gross  tonnage  hauled  one  mile  (a  very  important  item)— and  in  fact 
there  are  but  few  railroads  in  the  United  States  that  compile,  much  less  report, 
this  most  valuable  statistical  item. 

Total  Capitalization  per  Mile  of  Road  Opfjrated 

1911 


N.  Y.  N.  H.  &  H $191,840 

B.  &M 37,510 

N.  Y.  Central 141,394 

Erie 201,330 

Penn.  R.  R 180,607 

Del.  &  Hud 118,401 

D.  L.  &  W 32,897 

Leh.  Valley 104,228 

C.  R.  R.  of  X.  J 120,654 

Phil.  &  Read 90,503 

Bait.  &  Ohio 122,795 

Nor.  &  West 102,671 

Ches.  &  Ohio 116,906 

Atl.  Coast  Line 45,029 

Seab.  Air  Line 64,258 

Southern  Ry 62,443 

Lou.  &  Nash 46,595 

Nash.  C.  &  St.  L 20,641 

Penn.  Co 150,349 

L.  S.  &  M.  S 131,468 

P.  &  L.  E 135,814 


P.  C.  C.  &  St.  L $  89.246 

Mich.   Cent 33,389 

Pere  Marq 51,687 

Vandalia 41,618 

Wabash 87,146 

C.  &  A 121,785 

HI.  Cent 67,030 

C.  B.  &  Q 35,334 

C.  &  N.  W 46,596 

C.  R.  I.  &  P 37,018 

Frisco   81,141 

M.  K.  &  T 78,484 

^ro.  Pac.  Sys 66,118 

n.  &  R.  G 79,172 

C.  G.  W 73,029 

C.  M.  &  St.  P 61,936 

Grt.    Nor 66,565 

Nor.   Pac 85,376 

Union  Pac 149,532 

Santa  Fe  Sys 74,123 

Sou.  Pac.  Sys 59,064 


GENERAL  FEATURES 

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10 


EAILROAD  OPERATING  COSTS 


GENERAL  FEATURES 


11 


The  capitalization  of  a  railroad,  while  most  important  from  a  financial  stand- 
point, is  of  but  little  moment  in  our  present  analysis.  In  order  to  show,  in  part, 
the  great  difference  in  capitalization  of  the  various  roads,  and  in  part  the  sound- 
ness of  a  commonly  used  unit  of  measurement  of  capital  (the  mile  of  road),  a  chart 
is  presented.  Fig.  1,  showing  the  total  stocks  and  bonds  outstanding  per  mile  of 
road  operated,  as  reported  to  the  Interstate  Commerce  Commission. 

In  making  analyses  of  railroad  returns  from  an  operating  standpoint,  the  first 
item  to  consider  is  the  gross  operating  revenue  or  gross  earnings.  A  chart  is  next 
presented.  Fig.  2,  illustrating  the  gross  earnings  per  mile  of  road,  for  the  repre- 
sentative roads  of  the  country.  The  unit  used  here — the  mile  of  road — is  a  mis- 
leading measure  at  best  in  any  analysis  of  operating  efficiency. 

Of  the  two  items  that  determine  gross  earnings,  volume  and  class  of  traffic, 
the  former  is  the  more  important;  granted  a  larger  volume  of  business,  even  if  it 
be  of  low  rate  class,  a  railroad's  earnings  will  be  sufficiently  large  to  make  it  profit- 
able. The  railroad  business  is  particularly  subject  to  the  law  of  increasing  return — 
its  expenses  do  not  rise  in  proportion  to  increase  of  business. 

Between  competing  roads  in  the  same  territory,  or  connecting  the  same  termi- 
nal centers,  the  traffic  department  (the  "sales"  department)  is  a  most  important 
factor  in  securing  freight — and  passengers — which  is  to  say,  earnings.  But  the 
great  factor  is  industrial  development; — particularly  in  the  coal  and  iron  trades, 
which  produce  heavy  tonnage.     This  industrial  development  and  agricultural  de- 

Gboss  Earnings  per  Mile  of  Road  Operated 

1911 


N.  Y.  N.  H.  &  n $30,456 

B.  &M 19,982 

N.  Y.  Central 28,051 

Erie 24,319 

Penn.  R.  R 39,523 

Del.  &  Hud 24,632 

D.  L.  &  W 38,649 

Leh.  Valley 26,313 

C.  R.  R.  of  N.  J 39,116 

Phil.  &  Read 43,731 

Bait.  &  Ohio 19,881 

Nor.  &  West 17,743 

Ches.  &  Ohio 15,866 

Atl.  Coast  Line 7,029 

Scab.  Air  Line 7,151 

Southern  Ry.  .  . .  , 8,569 

Lou.  &  Nash 11,742 

Nash.  C.  &  St.  L 9,820 

Penn.  Co 36,050 

L.  S.  &M.  S 29,138 

P.  &L.  E 73,053 


P.  C.  C.  &St.  L $26,522 

Mich.  Cent 16,491 

Pere  Marq 6,858 

Vandalia 12,603 

Wabash 11,882 

C.  &  A 14,330 

111.  Cent 13,363 

C.  B.  &  Q 9,730 

C.  &  N.  W 9,706 

C.  R.  I&  P 8,708 

Frisco  8,631 

M.  K.  &T 9,110 

Mo.  Pac.  Sys 7,300 

D.  &  R.  G 9,007 

C.  G.  W 8,457 

C.  M.  &  St.  P 8,650 

Grt.    Nor 8,452 

Nor.   Pac 10,909 

Union  Pac 14,856 

Santa  FeSys 10,728 

Sou.  Pac.  Svs 12,995 


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"  KAIIJiOAl)  OPERATING  COSTS 

The  prosperity  of  a  railroad  bears  a  fairly  direct  relation  to  tl.e  people  served 
but   hese  people  may  hve  beyond  its  territory.     One  road  may  run  through  7"! 
developed  eomn.un.ty,  settled  with  thriving  manufaeturing  to«-ns  whTeh  deve  op 

traverse,  a  sparsely  populated  country  for  hundreds  of  miles,  where  the  revenue  re- 
ntes ^H  '""      """^  '^  P"^"«"'^  """""»'  «■"»  ■-«  -  'his  1  tter  rid  con- 
the  greater     "*^  '  "•"""*'"^  '"''"  ^°"""^"''"  ^-"™''  '»«  -™--  ""X  be 

The  aeeompanying  chart.  Fig.  3.  shows  the  density  of  contiguous  nonulation 

by  each  road  and  divided  by  the  total  miles  of  road  operated,  and  illustrate,  com 

Crirt'i^-fiiE'r^" "" '""'-'- "  --'^«""  -'  °^  -™^- 

earnin!'Io?;Tfs.n  ^"*''"  T'"'*."  'n,'*'^"""  P^P"'""™  "^  "''O*  P*^  -"^  ^as  gross 
earning,  of  $14  330  per  mile;  the  Illinois  Central,  ],568  people  per  mile  and  $13- 

363  earnings;  the  Southern  Pacific,  563  people  and  $13,000  earnings      Z  BM 

more  &  Ohio  with  4,33f,  people  and  the  Union  Pacific  with  531    have  grls  ea  n 

ings  of  $19,880  and  $1-1,850  per  mile  respectively.     The  Burling  on  anfth    7<^i. 

Island  l,e  in  the  same  general  terrif.ry;  the  gross  earnings  of  the  former  are  $9  7^0 

»»,/08  and  Its  population  per  inile  1,322. 

The  grades  over  which  a  railroad  operates  are  exceedingly  inmortant  when  con- 
sidering operating  expenses,  b„,  have  no  direct  bearing  onVhe  gL  earnTngs 

r„»d    w  ™'.™\':'  """r^^^  '"""""I  ''"ring  a  given  period  relative  to  length  of 
road  determines  the  "density"  of  the  traffic.     Statements  fui-nished  by  railroad 
how  the  revenue  ton  miles  of  freight  handled  and  the  total  nun.bcr  of  paTs  ^ 
carried  one  mile,  i.  e..  passenger  miles  for  yearly  periods 

The  average  number  of  revenue  ton  miles  "per  mile  of  road"  can  be  used  as 

Z  ofTa'  "V"  "'"-°*""'  •'"'  ™'""'<'  "^  ^^^'^^'  ^'-"--     Tbe  aver  ge  num! 

ber  of  passenger  miles  "per  mile  of  road"  .an  be  used  to  illustrate  the  vo^me  of 

w  tTZ";,''':'""'-     I'"'"'^*"!.'^''*''  •""'  <■'-«.,  F,gs.  4  and  5,  are  submitted  here! 
with  for  the  «  mo  roads  shown  ,n  Figs.  1  and  2,  to  permit  of  comparative  study. 

A  road  s  traffic  density  figures  for  a  series  of  years  show  at  a  glance  the  varia- 
tions m  business  from  year  to  year  and  in  comparisons  between  roads  this  unit 
affords  a  concise  inde.x  of  the  relative  quantities  of  revenue  traffic  handled 

It  IS  interesting  ,n  comparing  various  roads  to  consider  together  the  grades 
the  gross  earnings  and  the  density  of  traffic.  ' 

Krst,  let  us  compare  three  roads  lying  in  the  same  general  territory:  the  Penn- 
sylvania Railroad,  the  New  York  Central  and  the  Baltimore  &  Ohio. 

Freight  Freight 

^-^-^«entral • '^^  "^^ 

Pennsylvania  Railroad 20  47^^  ^o  ot 

Ba'timore &  Ohio ::::::::.  u^      tlil 


GENERAL  FEATURES 


13 


POPUUTION  PER  MILE  OF  ROAD 

By  Counties 


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30U.RY. 


/^lO 


O         SCO      woo     /SOO    S^OOO    ZSOC     30CO     3500     4-000     ASOO 


GT.NOR. 
SYSTEM 

NORRAC, 
SYSTEM 

UNION.FAC. 

CMekStPRY 

CB.€^  Q 
SYS  T  CM 

CR.I  t^R 
SYSTEM 

44a  PAC 
SYSTEM 


ATe^S.r 
SYSTEM 

SOU  PAC 
SYSTEM 


SOO      /OOO      /SOO     ZOOO     ZSOO      3OO0     35^0 

Fig.  3 


44H>0    4500 


14 


« 


^11 


II 


RAILROAD  OPERATING  COSTS 

Density  of  Traffic  (Freight) 
100,000  Revenue  Ton  Miles  Per  Mile  of  Road 


1911 

N.  Y.  N.  H.  &H 10.88 

B.  &  M 10.54 

N.  Y.  Central 26.21 

Erie 29.42 

Penn.  R.  R 49.25 

Del.  &  Hud  30.01 

D.  L.  &  W 39.15 

Lehigh  Valley 34.10 

C.  R.  R.  of  N.  J 34.83 

Phil.  &  Read 45.98 

Bait.  &  Ohio 26.39 

Nor.  &  West 34.46 

Ches.  &  Ohio 30.09 

Atl.  Coast  Line 3.95 

Seab.  Air  Line 4.20 

Southern  Ry 5.8O 

Lou.  &  Nash 11.08 

Nash.  C.  &  St.  L 6.83 

Penn.   Co 46.37 

L.  S.  «&  M.  S 36.26 

P.  &  L    E 92.24 


P.  C.  C.  &  St.  L 29.08 

Mich.  Cent 17.05 

Pere  Marq 7.97 

Vandalia 13.48 

Wabash 13.29 

C.  &  A 14.93 

111.  Cent 14.64 

C.  B.  &Q 7.84 

C.&N.  W 7.04 

C.  R.  I.  &  P 6.01 

Frisco   5.45 

M.  K.  &T 5.12 

Mo.  Pac.  Sys 6.07 

D.  &  R.  G 5.45 

C.  G.  W 8.22 

C.  M.  &  St.  P 7.08 

Grt.    Nor 7.39 

Nor.   Pac 8.06 

Union  Pac 10.59 

Santa  Fe  Sys 7.03 

Sou.  Pac.  Sys 6.55 


Tlie  freight  earnings  per  mile  of  road  and  the  freight  density  (revenue  ton 
miles  per  mile  of  road)  go  hand  in  hand:  the  freight  densities  on  the  New  York 
Central  and  the  Baltimore  &  Ohio  are  about  equal  and  the  earnings  are  nearly  the 
same;  the  density  of  freight  traffic  on  the  Pennsylvania  Railroad  is  nearly  double 
that  on  the  New  York  Central  and  the  Baltimore  &  Ohio,  with  freight  earnings  in 
the  same  proportion. 

When  we  consider  the  passenger  traffic,  a  like  relation  between  density  of  traffic 
and  volume  of  earnings  is  to  be  seen :  Passenger  Passenger 

Earnings  Density 

New  York  Central   $8,647  533 

Pennsylvania  Railroad   8,316  427 

Baltimore  &  Ohio 3,430  179 

The  grades  of  the  Pennsylvania  Railroad  and  the  Baltimore  &  Ohio  are  similar 
in  nature  and  not  very  far  from  equal  in  extent,  while  the  New  York  Central  has 
decidedly  lower  grades  than  either. 

Summed  up,  the  ruling  grades  on  various  lines  and  branches  of  the  systems  are : 

Ruling  Grade 

New  York  Central 20  to     .86% 

Pennsylvania  Railroad  36  to  1.75% 

Baltimore  &  Ohio 70  to  1.80% 


GENERAL  FEATURES 


15 


Df/ys/rr  or  mArr/c  Cfm^/fT). 

mooo  /^eyewe  To/?  n/ej  F'errr/k  of/^oa^. 


ioojooo  n/i£s.' o 


/in.  co/isri/. 

5^ A3  Amu 

/YAS/i.CJt^rt. 
/'^/Y/YACO. 

M/YDAl/A. 

imaASYf, 

C.gcA, 

r/z/sco. 
cY/y/o/r  FAc. 

SA/fTA/TSrs. 

>socc^Aa  srs 


/CC.  coo  /TZ/JTS-O 


m. 


&o 


Fio.  4 


IG 


EAILKOAJJ  OPElJATINCi  COSTS 


Density  of  Traffic  (Passenger) 
1,000  Passenger  Miles  Per  Mile  of  Eoad 

1911 


N.  Y.  N.  H.  &H 765 

B.  &  M ....384 

N.  Y.  Central 533 

Erie    305 

Penn.  R.  R 427 

D.  &  H 168 

D.  L.  &  W 607 

Leh.  Valley 180 

C.  R.  R.  of  N.  J 513 

Phil.  &  Read 404 

Bait.  &  Ohio 179 

Nor.  &  West 98 

dies.  &  Ohio 122 

Atl.  Coast  Line 78 

Seab.  Air  Line 72 

Southern  Ry 105 

Lou.  &  Nash Ill 

Nash.  C.  &  St.  L 95 

Penn.  Co 319 

L.  S.  &  M.  S 407 

P.  &  L.  E 462 


P.  C.  C.  &  St.  L 298 

Mich.  Cent 208 

Pere   Marq 95 

Vandalia    142 

Wabash  152 

C.  &  A •. 212 

111.  Central 153 

C.  B.  &  Q 129 

C.  &  N.  W 136 

C.  R.  I.  «&  P 130 

Frisco 101 

M.  K.  &  T 122 

Mo.  Pac.  Sys 67 

I).  &  R.  G 99 

C.  Ct.  W 100 

C.  M.  &  St.  P 104 

Grt.  Nor 81 

Nor.  Pac 127 

Union   Pac 163 

Santa  Fe  Sys 127 

Sou.  Pac.  Sys 195 


The  Pennsylvania  Railroad  with  similar  grades  to  the  Baltimore  &  Ohio  has 
nearly  double  the  freight  traffic  density  and  almost  twice  the  earnings;  the  New 
York  Central  with  its  very  low  grades  shows  about  the  same  freight  earnings  as  the 
Baltimore  &  Ohio  with  its  heavy  grades. 

The  splendid  showing  of  the  Pennsylvania  illustrates  the  force  of  a  previous 
comment  on  industrial  geography  and  the  coal  and  iron  trades. 

Now  to  compare  an  eastern  with  a  western  road,  each  crossing  a  mountain 
range,  and  with  equivalent  grades : 


Earnings 

Baltimore  &  Ohio $15,253 

Union  Pacific 10,303 


The  freight  density  on  the  Union  Pacific  is  only  40%  of  that  on  the  Baltimore 
&  Ohio,  while  the  earnings  per  mile  are  67%  as  great,  indicating  much  higher 
freight  rates  per  ton  mile  on  the  Union  Pacific.  Passenger  densities  and  earnings, 
however,  show  like  ratios,  indicating  more  nearly  similar  rates  in  this  class  of 
traffic  on  the  two  roads. 


Freight 

Passenger 

Density 

Earnings          Density 

26.39 

$3,430              179 

10.59 

3,189             163 

1 


-Indiana 


New  Yorh- 


-Lake  Shore  and  Michigan  Southern 


New  York  Central- 


Condensed  Profile  of  the  New  York  Central  Lines. 


•'M^lndiana- 


■♦+*- 


Ohio 


Pennsylvania 


0:45% 


J£0 


o!67% 


850 


\27.0 
i  0.617c 


^00 


0^6% 


0.367 


a9.0  I 
"065% 


a9.o 

6.557. 


~W^ 


065% 


087% 


'6J:0\ 


800     760       700      650       600 


0977c 
~6Sd~ 


470     ■ 
0.897o 


48.0    ! 


0.9/7c 


1757. 


80.8 


1.63 


->K 


1^1 


0.477c 


-m' 


040% 


T6% 


3^70 
0.7% 


600       JSO       400       350      300      250      200        150 


100 


0.69% 


I9i0 


0\367c 


SO 


n-.  Per  Mile  West 


Percent     West 


Ft  Per  Mile  East 


Percent     E:ast 


Miles  From  Jersey  City. 


HSC 


Condensed  Profile  of  the  Pennsylvania  System, 


III.  |< — Indiana 


-Pennsylvania 


^-^ 


\^W.  Virginia**— Manjland — *- 


^\^Pa.-^NJ.-^ 


Condensed  Profile  of  the  Baltimore  and  Ohio  Hailroad, 


■La.- 


Mississippi 


^Tennessee  -^Klj. 


Illinois 


* 

»o 

»o 

;  ^ 

1^ 

cv 

^ 

^ 

VO 

•^ 

^ 

5 

^ 

Q. 

-^ 

1 

<5 

■X 

1 

0.547% 


Ok 
00 

I 


as.o 


0.5497. 


150        100        50 


Ft  Per  Mile  South 


Per  Cent   South 


Ft  Per  Mile  North 


Per  Cenl    North 


Mi  led  From  Chicago 


HS^. 


Condensed  Profile  of  fhe  Illinois  Cenfral  Railroad. 


"if'P'Uiil.. 


■'  WW 


jJUmUJII 


Condensed  Profile  of  fhe  Chicago  and  North  Western  Railwaij. 


Colorado- 


■Nebraska 


iowa 


■Illinois 


^54.3 


5/.7 


~aM 


'^1.7 


21.1 


^4S 


M.80       ! 


S2.8 


42.24 


Ft  Per  Mile  We5r 


t^ 


O&sro 


\0.6% 


0.67. 


067o 


0,4% 


o.aav. 


Q.66% 


10% 


p.507o 


Per Cen1     Wesl 


42.& 


06'7o 


\00 


26.4 


\a07o 


~6J% 


257 


21.1 


^4.6      [ 


68. 6  A 


55.37 


56.43 


0.457o 


a4% 


o.eavo 


L507. 


T 


0.617o 


\0.69% 


Ft  Per  Mile  East 


^  ie 

0:^^ 


PerCern     Fast 
Miles  From  Oiicooo 


\000      960       900     650      300      760      700       660       600      S60       500      460       400       550      300      260      200       150       100        60 


tl-HC 


Condensed  Prof  He  of  the' Chicago.  Burlinqtonond  Ouincy  f^ailwaij. 


■P*>vam 


1050       1000     950        900       850      800       750        700        650       600      550        500       450       400 


500       250        aOO        150        100 


Miles  From  Chicaao 


use 


Condensed  Profile  of  the  Chicago,  Hoch  Island  and  Pacific  Hailwaij. 


I 


I 


Colorado 


rr.Fer  Mile  East 


Per  Cent    East . 
PI  lies  From  St  Lou  15 


II 


use 


Condensed  Profile  of  the  f^issourl  Pacific  Railway. 


\— California- 


-*H- 


79.0 


5Z.0 


l.0%\ 


1.5% 


loss 


10% 


1/6.0 


z:e% 


-Nevada- 


-•4*- 


urah 


Wyoming- 


Nebraska 


\ai.o 


0.4  7o 


^1.0 


\0.47o 


7S0 


MZ7. 


IKo 


MSI. 


0Al7o 


96.0. 


l.dZ7c 


6Z.0 


.  1.5570  ! 


AZ.O 


o.5n 


6M 


I.Z57o 
40.0 


1700      1600      1500     1400       1500     ISOO      11 00      1000      900      300       700       GOO       500     400       7^00 


0.767c 


-Southern  Pacific 


200       100 


Union  Pacific 


Condensed  Profile  of  the  Southern  Pacific  and  Union  Pacific  Poilwads, 


Ft.  Per  Mile  Wesi 


Percent     Wesi 


Ft.  Per  Mile  East 


Per  Cent    East 


M/7gs  From  Omaha 


HSC. 


use. 


Condensed  Profile  of  the  Northern  Pacific  fi'a/lwaq. 


■California 


ISQ.4 


Colorado- 


-Wansas- 


Mi55ourf — ^—Illinois 


.  Z^OO    aiOO     2000     1900 


100 


Condensed  Profile  of  the  Rtchison.  TopeKa  and  5anta  Fe  mimui 


l-tPerMile  West  I 
PerCem    V^est    c  "§ 
n.Per  Mile  East    ^  S 
Percent    Za^^"^ 


Miles  From  Chicago 


•/s.c 


GENERAL  FEATURES 


17 


mo  f^ssen^er  /7//es  /^a/^/^^Z/Sbs/ 


m. 


nf./i.MJth. 

f'^/Y/YA./i/l. 

if/i/a//  y/u.. 
s.s-o. 

ATL.C0A57U 
3£AB.A//<1/. 
50  f/.  /f  K 

loa.  s-z/AS^y. 

/^/y/YA.  CO. 

/f'cc^sri 
/7/c/i.  c^/rr. 

//i/YDAl/A. 
WA3AS/f. 

/ll.  Ce/YT 

ci'/y.yy: 

C./i/^/'. 

r/c/sco. 

m/^csrs. 

cakv. 
cAT^sr.e 

rtoK.  FAc 

{////O^/^AC. 

sA/rrA  /rsK 
^o(/./^c  srs 


foo 


zoo 


JOO 


40O 


soo 


eoo 


TOO 


800 


/oo 


xoo 


300 


'^OO 


S'OO 


soo 


TOO 


aoo 


Fig.  5 


18 


RAILROAD  OPERATING  COSTS 


To  compare  two  western  roads  with  similar  grades,  in  like  territory,  let  us  take 
the  Northern  Pacific  and  tlie  Great  Northern: 


Freight 
Earnings  Density 

Northern  Pacific  $6,776  8.06 

Great  Northern  5,947  7.39 


Passenger 
Earnings  Density 

$2,702  127 

1,840  81 


Here  we  find  that  constant  ratio  between  density  of  traffic  and  gross  earnings 
which  the  parallelism  of  the  roads  and  their  unity  of  management  would  lead  us 

to  expect. 

The  foregoing  examples  illustrate  the  absence  of  direct  relations  between  the 
extent  of  the  population  living  along  the  line,  the  density  of  traffic,  the  physical 
characteristics  and  the  gross  earnings. 

In  the  annual  reports  of  railroad  presidents,  in  the  reports  of  the  Interstate 
Commerce  Commission  and  in  the  prominent  financial  manuals,  particular  stress 
is  laid  upon  the  ratio  of  operating  expenses  to  gross  earnings  (see  Fig.  6),  on  the 
assumption  that  this  ratio  is  the  fundamental  basis  of  comparing  efficiency  in  opera- 
tion. 

The  fallacy  of  the  assumption  readily  may  be  shown— if  any  presumption  is 
needed  to  demonstrate  the  futility  of  using,  for  a  measure  of  efficiency,  the  mathe- 

Operating  Ratios 
Per  Cent.  Operating  Expenses  to  Gross  Earnings 

1911 


N.  Y.  N.  H.  &  H 65.8% 

B.&]^r 'J'8.4 

N.  Y.  Central 74.0 

Erie 64.9 

Perm.  R.  R ^2.2 

Del.  &  Hud 60.6 

D.  L.  &  W 60.2 

Leh.  Vallev 62.1 

C.  R.  R.  of  N.  J 57.3 

Phil.  &  Read 62.2 

Bait.  &  Ohio "1.2 

Nor.  &  West 64.6 

Ches.  &  Ohio 64.8 

Atl.  Coast  Line 64.7 

Seab.  Air  Line 66.5 

Southern  Ry 67.8 

Lou.  &  Nash 71.3 

Nash.  C.&St.  1 75.3 

Penn.  Co 68.3 

L.  S.  &M.  S n.7 

P.  &  L.  E ^^^-4 


P.  C.  C.  &  St.  L. 

Mich.  Cent 

Pere  Marq 

Vandalia 

Wabasli 

C.  &  A 

111.    Central.... 

C.  B.  &Q 

C.&  N.  W 

C.  R.  L&P.... 

Frisco   

M.  K.  &T 

Mo.  Pac.  Sys . . . 

D.  &  R.  G 

r.  M.  &  St.  p.. 

Grt.  Nor 

Nor.   Pac 

Union  Pac 

Santa  Fe  Sys . . 
Sou.  Pac.  Sys. . 


•   ■•••• 


72.07o 

75.0 

80.4 

77.3 

74.8 

71.6 

71.9 

67.5 

70.8 

72.0 

66.7 

70.8 

82.1 

68.2 

74.8 

69.1 

61.3 

61.2 

53.2 

65.7 

60.1 


GENERAL  FEATURES 


19 


OPmATIflG  /(AT/OS. 
fkrcent  Operaf/n^r  fxpense^  to  /^ross  nam/ngs. 

/M 


ff/tCf/iT-O 


Jd 


zo 


so 


^o 


50 


60 


70 


SO 


nr  cf/yr 

D.  I.  ic^. 

cRA.  ornu 

FHJIA.  ^/i£AD. 

CH£S,^OWO. 
ATI  COAST  U 
S£A3.A/f<l/. 

soi/r/f^RTf. 

lOUA-ZrAS^. 

mmcJcSTi. 

/"^TYT/A.CO. 

Fccsrsr/. 

F3F£ArATia. 

i/A/yOA/./A. 
JVABAS/i. 

/iL.c^/rr 

A7AJ^T 

A/aFAc.  jrs. 

C/7JCST.F 
GRrrYQTC. 

TYOR.  mc. 

U/Y/OAYFAC 
SATTTAFfSKS. 

^^/.PAC>sr^. 


Af/fCe/YT'O 


w 


xo 


so 

Fig.  6 


^f^ 


SO 


60 


70 


SO 


20 


BAILROAD  OPERATING  COSTS 


matical  ratio  between  two  quantities,  one  of  which  may  vary  independently  of  any 
factor  of  efficiency  of  operation — as  when  earnings  rise  because  of  higher  rates  on 
an  unchanged  tonnage  traffic. 

For  several  years  past  the  Union  Pacific  has  maintained  its  ratio  of  operating 
expenses  to  gross  earnings  at  a  lower  figure  than  any  other  railroad  in  the  United 
States.  If  the  ratio  of  operating  expenses  to  gross  earnings  is  the  all-important  and 
fundamental  basis  of  comparison,  the  Union  Pacific  is  the  most  efficiently  operated 
railroad  in  the  country.  This  ratio  was  59%  for  the  fiscal  year  1908  and  51% 
for  the  fiscal  year  1910,  the  gross  earnings  during  these  periods  showing  an  increase 
of  19.5%  as  compared  with  a  6.6%  increase  in  opeiating  expenses,  all  of  which  is 
further  evidence  of  efficient  operation  on  the  above  basis. 

It  is  evident  that  the  increase  in  gross  earnings  was  the  controlling  factor  in  the 
reduction  of  the  ratio  of  operating  expenses  to  gross  earnings. 

Incidentally,  analysis  of  the  operating  expenses  during  these  two  years  reveals 
an  increase  of  31%  in  traffic  expenses,  and  further  investigation  develops  that  the 
increase  in  gross  earnings  is  to  be  attributed  in  great  part  to  the  ability  of  the 
traffic  department  to  secure  the  transportation  of  commodities  of  higher  class,  for 
the  revenue  per  ton  in  1910  shows  a  marked  increasic  over  1908 — all  of  which  illus- 
trates the  value  of  an  able  traffic  department. 

The  Union  Pacific  had  freight  earnings  of  $11,033  per  mile  in  1910  and  a 
freight  density  of  10.91 ;  the  Great  Northern,  a  transcontinental  competitor,  had 
freight  earnings  of  $6,693  per  mile  in  1910  and  a  freight  density  of  8.14.  From 
the  last  figures  it  is  clear  that  the  Union  Pacific  handles  an  entirely  different  class 
of  commodities  than  the  Great  Northern  and  consequently  receives  a  higher  average 
compensation,  all  of  which  has  a  marked  effect  on  the  gross  earnings  but  has  little 
effect  on  the  cost  of  operating.  If  the  remuneration  per  ton  for  freight  was  the 
same  on  the  Great  Northern  as  on  the  Union  Pacific,  the  ratio  of  operating  expenses 
to  gross  earnings  of  the  former  would  be  reduced  from  61%  to  52%;  which  com- 
pare with  the  51%  on  the  Union  Pacific.  A  comparison  of  the  profiles  of  the  two 
roads  suggests  interesting  deductions  regarding  their  relative  efficiency  of  operation. 

Various  comparisons  with  diverse  results  may  be  made  between  the  several 
railroads  shown  in  the  diagram,  and  may  be  used  to  show  clearly  that  the  ratio  of 
operating  expenses  to  gross  earnings  is  not  a  reliable  basis  of  comparison  of  economy 
of  operation. 

The  operating  expenses  of  a  railroad  are  dependent  largely  upon  local  conditions 
and  must  be  separately  analyzed  in  order  to  determine  the  efficiency  of  operation. 
The  present  railroad  reports  make  five  divisions  of  expenses,  as  follows: 

1.  Maintenance  of  Way  and  Structures, 

2.  Maintenance  of  Equipment, 

3.  Transportation  Expense, 

4.  Traffic  Expense, 

5.  General  Expense. 

The  relative  proportion  of  the  four  main  divisions  of  expense  (traffic  expense 
being  of  a  recent  subdivision  of  transportation  expense)  to  the  total  cost  of  opera- 


/?/ir/<^j  or/iccoums  to  wal  oPER/in/iG  ap^mt^. 

//?  Percent  of  Total. 


40 


1901 
J902 
/903 
/904 
/906 
JS06 

/908 
/909 
f3/0 


(901 

/Me 

f905 
/906 

mo? 
/9ae 

/S09 
f9tO 


t90l 

/»? 

1903 
/OO^ 
/90J 
/906 

/sor 
/9oe 

/009 


20  30 

Conductm^  'Pan^riation. 


so 


Hainh nance  cfhkif. 


nalntenonce  ofLOuipment 


General  Expenses 


iO 


20 


30 


40 


SO 


Fig.  7 


22 


RAILEOAD  OPERATING  COSTS 


tion  for  the  period  between  1901  and  1910,  shown  graphically  in  Fig.  7,  is  as  fol- 
lows : 

Classification  of  Operating  Expenses  in  Per  Cent  of  Total 

Maintenance  Maintenance  Conducting  Greneral 

Year  of  Way  of  Equipment         Transportation  Expenses 

1901 22.27%  18.63%  54.98%  4.12% 

1902 22.26  19.13  54.67  3.95 

1903 21.19  19.13  55.89  3.79 

1904 19.52  19.97  .               56.67  3.84 

1905 19.78  20.76  55.48  3.96 

1906 20.29  21.39  54.43  3.86 

1907 19.66  21.06  55.54  3.73 

1908 19.73  22.06  54.89  3.32 

1909 19.29  22.75  53.98  3.98 

1910 20.22  22.66  53.36  3.76 

As  the  operating  expenses  are  dependent  upon  operating  conditions,  the  subse- 
quent chapters  present  anal3^ses  of  detailed  operating  costs,  illustrating  tlie  question 
of  efficiency. 


Maintenance  of  Way  and  Structures 


chapts:e  II. 


The  major  portion  of  any  railway's  initial  cost  and  capitalization  is  presented 
in  the  road  and  not  in  the  rolling  equipment.  The  road,  moreover,  represents  ap- 
proximately as  large  an  annual  expenditure  for  maintenance  as  does  the  roUing 
equipment,  and  though  it  does  not  appear  in  the  accounts,  an  even  larger  sum  for 
depreciation.  Not  only  this,  but  the  continual  improvements  in  transportation 
methods  and  standards  entail  the  sinking  of  larger  capital  sums  annually  in  bet- 
terments than  is  the  case  with  the  equipment. 

No  one  department  of  a  railway's  operation  has  such  potent  effect  upon  the 
whole  character  and  results  of  that  operation  as  the  department  having  jurisdic- 
tion over  maintenance  of  way  and  structures,  including  therein  those  activities  of 
the  railway  charged  with  the  physical  betterment  of  the  way,  and  with  the  provisions 
of  additional  facilities.  The  train  load  is  more  a  function  of  the  grade  than  it  is 
the  size  of  the  locomotives.  Grade,  therefore,  is  the  principal  cause  affecting  cost 
of  transportation  and  is  dependent  largely  upon  topography.  Topography  also 
determines  the  cost  of  way  so  far  as  it  relates  to  engineering  but  not  so  far  as  it 
relates  to  ground  values.  Tunnels,  bridges  and  terminals  involve  capital  expendi- 
tures, running  into  the  millions  per  mile,  and  very  large  traffic  results  must  accrue 
to  warrant  any  considerable  expenditures  for  this  kind  of  mileage. 

Curvature,  also  determined  by  topography,  is  an  obstruction  to  fast  and  economi- 
cal operation,  similar  to,  but  not  equally  as  large  as,  that  of  grade.  Outside  clear- 
ances, determined  by  tunnel  sections,  overhead  bridges  and  by  projections  into  the 
right-of-way  area,  have  also  a  profound  effect  upon  the  cost  of  transportation  as 
they  determine  locomotive  and  car  capacities.  Span  and  strength  of  bridges  and 
culverts,  solidity  of  fills,  ballast  and  track,  also  affect  transportation  capacity,  plac- 
ing limits  on  axle  loads,  total  locomotive  weights,  and  speeds. 

It  needs  no  demonstration  to  show  that  the  locomotive  and  train  crew  will 
handle  a  larger  train  upon  a  level  road  than  upon  a  hilly  or  mountainous  one,  that 
the  train  will  run  faster,  that  less  fuel  will  be  burned,  that  the  wear  and  tear  on  the 
locomotive  and  cars  (brakes,  wheels,  etc.),  will  be  less. 

Stated  in  another  way,  to  attain  the  same  train  load  or  speed  upon  the  road  with 
a  heavy  grade  as  upon  the  level,  a  larger  and  more  costly  locomotive,  burning  more 
fuel,  must  be  used,  and  the  draft  gear  and  the  cars  otherwise  strengthened  to  with- 
stand the  greater  shocks.     The  net  result  in  either  case  is  increased  transportation 

cost  due  to  grade. 

Every  railroad  man  knows  that  a  curve  can  be  designed  for  one  speed  of  train 
only  and  that  it  either  has  too  great  or  too  little  elevation  of  the  outer  rail  for  speeds 
less  or  greater  than  that  for  which  it  was  designed. 


u 


IIAILUOAI)  OPERATING  COSTS 


This  restriction  on  speed,  and  also  train  resistance  due  to  curvature,  increases 
tlie  size  of  the  motive  power  and  the  time  necessary  to  move  a  train  over  a  given 
mileage. 

Closely  connected  with  tlie  prohloni  of  curvature  is  that  of  alignment.  A  short 
direct,  straight  and  level  line  will  permit  of  a  denser  and  more  economical  traffic 
movement  than  a  longer  tortuous  route.  But  with  the  given  probahle  increase  in 
traffic  requirements  there  is  a  definite  point  where  the  relocation  of  a  road,  to  avoid 
curves  and  grades  will  not  pay.  An  example  of  such  a  condition  is  found  in  the 
case  of  the  Lucin  cut-off  across  Salt  Lake. 

The  width,  height,  and  length  of  a  car  depend  upon  the  clearance  of  the  road. 
If  we  contrast  the  load  clearances  usually  found  in  this  country  with  those  obtain- 
ing in  England,  Me  find  that  where  our  widths  run  from  10  to  12  feet,  their  maxi- 
mum is  about  0:  where  our  heights  are  from  15  to  18  feet  above  the  rail,  their 
maximums  are  between  12  and  13.  This  leaves  a  possible  load  area  above  the  plat- 
form of  the  cars  of  approximately  from  60  to  70  square  feet  in  British  practice  as 
compared  with  from  110  to  150  square  feet  in  American  practice,  giving  about  100% 
more  load  per  foot  of  length  of  car  on  American  roads  as  compared  with  British. 
Thus  it  is  that  the  British  ''goods  wagon"  has  a  capacity  averaging  barely  one-fourth 
the  capacity  of  our  eight-wheeled  freiglit  car,  a  restriction  in  carrying  capacity  per 
unit  length  of  train  imposed  chiefly  by  the  much  smaller  clearances  obtaining 
abroad.  In  this  respect  western  roads  in  the  United  States,  roads  generally  in  new 
countries,  and  roads  particularly  in  flat  plains  regions,  have  a  great  advantage  over 
roads  in  older,  more  settled  or  more  mountainous  regions. 

Any  attempt  to  increase  the  clearance  through  a  settled  community  or  over  a 
mountainous  line,  tends  to  become  prohibitive  in  expense  and  almost  insurmount- 
able in  physical  obstacles. 

Bridges  are  designed  for  a  maximum  load  and  speed  factor;  loads  and  speeds 
above  these  used  in  the  factor  of  design  produce  stresses  in  the  structure  exceeding 
safe  working  limits  and  in  so  far  as  the  bridges  cannot  be  strengthened  to  support 
a  heavier  load  or  higher  speed  than  that  for  which  they  were  designed,  they  act 
as  a  hindrance  to  the  movement  of  traHic  by  economical  train  loads  and  speeds.  Not 
long  ago,  40,000  pounds  was  the  unit  locomotive  axle  load  used  in  Cooper's  formula ; 
driving  wheel  axle  loads  exceeding  50,000  pounds  are  usual  current  practice  now, 
and  loads  between  sixty  and  seventy  thousand  pounds  are  not  uncommon.  It  is 
obvious  that  a  line  built  or  rebuilt  to-day  for  heavy  traffic  should  be  equipped  with 
bridges  and  culverts  capable  of  supporting  an  axle  load  not  far  short  of  100,000 
pounds,  if  future  needs,  within  the  economical  life  of  the  structures,  are  to  be  pro- 
vided for. 

What  is  true  of  bridges  is  in  large  measure  equally  true  of  track  from  the  ball 
of  the  rail  to  the  road  bed.  The  wearing  surface  of  the  rail  must  possess  sufficient 
hardness  to  avoid  metal  flow  under  the  greatest  wheel  pressures;  to  wear  such  a 
length  of  time  under  dense  traffic  as  not  to  make  frequency  of  renewals  an  uneco- 
nomical burden  on  operation.  The  rails  must  be  so 'stiff  as  not  to  fail  under  the 
greatest  shocks,  both  vertical  and  side,  experienced  in  practice,  and  must  be  sup- 
ported at  sufficiently  frequent  intervals  as  not  to  bend,  and  upon  sufficient  area  of 
sleepers  and  ballast  as  to  eliminate  the  tendency  of  crushing  or  settling. 


MAINTENANCE  OF  WAY  AND  STRUCTURES 


25 


Without  at  this  time  going  into  such  details  as  kind  of  joints,  rails,  fastenings, 
character  of  ballast,  types  of  bridges,  etc.,  that  are  desirable  under  modern  operating 
tendencies,  it  is  evident  from  the  foregoing  that  the  engineering  practice  of  a  rail- 
way is  of  the  greatest  importance  in  its  influence  upon  the  whole  economy  of  opera- 
tion and  in  the  end  upon  financial  return. 

Although  the  prime  importance  of  the  relation  of  engineering  problems  to  profit- 
able railway  location  and  operation  is  well  recognized,  the  actual  cost  of  maintenance 


RELATION  or  TRAFnC  TO  MAINTENANCE 
or  iVArC05T3  ON  REPRESENTATIVE 
EASTERN  AND  WESTERN  ROADS -1 910 


DOLLARS 


iOOO  TOH  MILES 


DOLLARS 


2J 


COST  OF AtAINT£MANCC  OF  k¥AY AA/D  STRUCrURtS 
PER  AHLC  OF  ROAb. 

TRAFFIC  DENSITY 
(REVENUE  TON  MILES  RER  MIL€  Of  ROAO) 

MAINTEHANCE  OF  VVAY  AND  STRUCTURES 
RER  IOOO  REi/ENUC  TON  MILES. 

Fio.  8 


26 


RAILROAD  OPERATING  COSTS 


of  way  and  structures  does  not  vary  with  the  tralhc,  or  does  not  bear  nearly  so  con- 
stant a  ratio  to  traffic  density  as  in  the  case  with  maintenance  of  equipment  and 
transportation  expenses. 

The  relation  the  expenditure  for  maintenance  of  way  and  structures  for  a  given 
period,  bears  to  the  geographical  mileage  and  the  volume  of  business,  is  illustrated 
in  Fig.  8,  showing  this  information  graphically  for  ten  representative  railways. 

This  diagram  shows  the  variation  in  traffic  conditions  among  the  various  rail- 
roads, particularly  as  between  eastern  and  western  roads.  It  also  shows  that  com- 
parisons of  maintenance  costs  per  mile  of  road,  which  do  not  take  into  account  the 
traffic  density  are  valueless,  although  this  is  the  unit  usually  employed  by  investors 
and  railroad  men  in  judging  as  to  upkeep  of  the  property. 

Roads  with  two  or  more  tracks  must  spend  more  for  maintenance  of  way  per 
mile  of  road  than  those  having  only  single  track ;  roads  handling  a  heavy  volume  of 
business,  as  reflected  by  the  traffic  density  and  the  average  train  load  will  need  to 
spend  more  for  maintenance  of  track  and  also  equipment  than  those  doing  lighter 
business. 

A  study  of  Fig.  8  reveals  that  maintenance  does  not  vary  directly  in  proportion 
to  traffic  density,  although  it  might  seem  logical  to  suppose  that  such  would  be  the 
case.  It  seems  probable  that  the  earnings  or  the  financial  conditions  determine  the 
amount  of  maintenance  expenditure. 

Comparisons  covering  a  period  of  years  indicate  no  definite  conclusions  can  be 
reached  with  reference  to  the  maintenance  of  way  expenditures  for  any  one  year. 
Such  studies  to  be  valuable  must  cover  an  extended  period. 

In  Fig.  9  is  a  graphical  description  of  the  percentage  of  maintenance  of  way 
and  structures  to  the  total  operating  expenses  on  the  Lackawanna  and  the  Union 
Pacific  for  the  10  years  ending  1910.  The  relation  the  yearly  expenditures  bear  to 
the  1901  record  is  also  shown,  the  increases  and  decreases  indicating  an  exceedingly 
wide  variation. 

In  judging  the  maintenance  of  way  and  expenditures  of  a  given  line,  the 
physical  characteristics  must  in  all  cases  come  in  for  careful  consideration.  It  is 
manifestly  unfair  to  compare  the  maintenance  of  way  costs  (per  mile  of  road)  on 
the  Union  Pacific  with  the  Chicago  &  Alton.  The  Chicago  &  Alton  runs  through 
a  country  where  heavy  rains  are  frequent,  causing  the  ties  to  decay  in  a  short  time. 
The  ballast  used  is  gravel  or  cinders,  either  of  which  is  none  too  good  and  easily 
washed  out,  resulting  in  a  heavy  maintenance  cost.  Some  of  the  line  is  ballasted 
with  crushed  stone  which  is  excellent  ballast,  but  very  expensive. 

On  the  other  hand,  the  Union  Pacific  runs  through  a  comparatively  dry  or 
semi-arid  country  where  the  ties  seldom  are  removed  on  account  of  decay  and  the 
ballast  is  the  very  best  and  cheapest,  it  being  disintegrated  granite  from  Sherman 
Hill  near  Cheyenne,  Wyoming.    This  ballast  is  of  the  best  quality  and  is  procured 

at  a  low  cost. 

The  average  cost  of  maintenance  of  way  for  the  past  ten  years  is  $1,260  per 
mile  on  the  Union  Pacific,  as  against  $1,380  for  the  Chicago  &  Alton.  This  does  not 
necessarily  mean  that  the  track  of  the  Union  Pacific  is  not  kept  up  as  well  as  the 
track  of  the  Chicago  &  Alton. 


MAINTENANCE  OF  WAY  AND  STRUCTURES 


27 


mfcf/mee  mz/rrt/Ymcf:  or  mrmo  sTf^ucruREs 
TO  Tor/ji  o/T/f/tTZ/TG  EXFf/YJt  ro6er//f/^  i^/rn 

IfiCRf/fSE  ORDtCRf/ISe  COnPAf^ED  IV/TH  f90/. 


so 


£0 


/o 


Percentage  na/ntenance  of  h^t/ and 
Structures  to  Total  Operat/hg 
Expense. 


I 


/o 


1 1  5'  s 

S!  5  ^  I 


2C 


30 


/n  crease  or  Decrease 
%    Compared  mW?  /90/, 


D.LS'W. 


u/rm  F/rc. 


Fig.  9 


28 


KAILROAD  OPERATING  COSTS 


If  a  railroad  is  obliged  to  maintain  expensive  terminals,  it  should  spend  more 
than  a  railroad  of  tlie  same  type  in  other  respects,  which  does  not  have  these  charac- 
teristics. To  compare  two  roads  in  the  same  territory;  the  St.  Joseph  &  Grand 
Island  has  verj-  inexpensive  terminals,  while  the  Kansas  City  Southern  maintains 
elaborate  terminals  at  Kansas  City  and  particularly  at  Port  Arthur,  Texas.  The 
St.  Joseph  &  Grand  Island  spent  in  1908  only  $475  per  mile  for  maintenance  of  way, 
and  averaged  $700  per  mile  for  the  past  ten  years,  yet  this  small  amount  has  appar- 
ently been  sufficient  to  maintain  the  property  at  as  high  a  standard  as  has  been 
necessary  and  relatively  is  probably  as  good  as  the  Kansas  City  Southern  with  an 
average  for  nine  years  of  a  little  more  than  $1,000  per  mile. 

The  maintenance  of  way  expenditures  per  mile  on  a  ten  years'  average  vary  all 
the  way  from  $700  on  the  St.  Joseph  &  Grand  Island  to  over  $10,000  on  the  Pitts- 
burg &  Lake  Erie.  This  enormous  difference  is  explainable  when  we  realize  that 
all  of  the  mileage  operated  on  the  Pittsburg  &  I^ke  Erie  has  two  or  more  tracks 
while  the  St.  Joseph  &  Grand  Island  operates  only  a  single  track.  Again  the  Pitts- 
burg &  I^ke  Erie  has  a  freight  density  of  nine  million  revenue  ton  miles  per  mile  of 
road  and  an  average  revenue  freight  train  load  of  1200  tons  as  compared  to  the  St. 
Joseph  &  Grand  Island  with  a  freight  density  of  less  than  %-million  ton  miles  per 
mile  of  road  and  a  revenue  freight  train  load  of  220  tons. 

The  usual  reports  of  railroad  operations  as  published,  show  operating  costs  per 
mile  of  road  for  one  period  compared  with  another  period  (month,  year,  or  decade), 
and  unless  the  reader  is  familiar  with  the  road  in  question,  the  deductions  drawn 
from  a  perusal  of  the  figures  are  very  unsatisfactory. 

The  Atchison,  for  example,  expended  $1,835  per  mile  of  road  for  maintenance 
of  way  and  structures  in  1910,  as  compared  with  $793  in  1901.  Without  a  knowl- 
edge of  the  influencing  conditions,  the  volume  of  business,  etc.,  for  these  two  pe- 
riods, the  above  figures  would  indicate  the  expenditures  in  the  year  1910,  were  ex- 
horbitant  as  compared  with  1901,  and  a  careful  analysis  of  the  entire  situation  is 
necessary  in  order  to  determine  a  relative  comparison.  A  study  of  the  business 
handled  develops  the  freight  density  more  than  doubled  during  the  above  mentioned 
period,  thus  indicating  a  very  heavy  increase  in  the  volume  of  business.  This  fact, 
together  with  a  35%  increase  in  the  weight  of  locomotives  and  25%  increase  in 
capacity  of  freight  cars,  has  resulted  in  a  proportional  growth  to  the  wear  and  tear 
of  track  and  presents  the  matter  in  a  different  light. 

It  is  therefore  evident,  when  judging  maintenance  of  way  expenditures  that 
many  items  must  be  taken  into  consideration  other  than  the  mileage  operated  and 
the  gross  earnings.  Far  more  important  are  the  character  and  volume  of  business, 
the  topography  of  the  country  and  the  weight  of  equipment,  all  of  which  must  be 
given  due  consideration. 

The  following  table  is  submitted  showing  the  maintenance  costs  "per  mile  of 
road"  for  20  representative  railroads  for  the  years  1908,  1909,  1910  and  1911  and 
illustrated  in  Fig.  10. 


MAINTENANCE  OF  WAY  AND  STRUCTURES  89 

Maintenance  of  Way  and  Structures 
Per  Mile  of  Road. 


1908 

N.  Y.  N.  H.  &  H $2923 

N.  Y.  Central 3408 

Penn  R.  R 4456 

Erie    2915 

B.  &  0 2728 

D.  L.  &  W 4032 

Lehigh   Valley 2417 

N.  &   W .' 1801 

Atl.  Coast  Line 867 

Southern   946 

Lou.  &  Nash 1441 

L.  S.  &  M.  S 3837 

P.  &  L.  E 7380 

C.  B.  «&  Q 1595 

C.  &  N.  W 1056 

Frisco 943 

Union   Pac 1688 

Santa  Fe  Sys 1534 

Sou.  Pac.  Sys 1993 

Grt.    Northern 1502 


The  extremes  are  the  Atlantic  Coast  Line  with  an  annual  expenditure  of 
$797  in  1909,  and  the  Pittsburg  &  Lake  Erie  with  $9,069  in  1910,  a  difference  of 
1,036%. 

For  the  purpose  of  further  illustrating  the  erroneous  conclusions  possible  when 
the  unit  "per  mile  of  road"  is  used,  these  maintenance  costs  for  the  same  railroads 
are  also  shown  with  the  locomotive  tractive  mile  as  the  comparative  unit. 

This  unit  is  the  only  one  available  which  combines  the  volume  of  business  and 
the  weight  of  the  equipment,  since  it  is  determined  by  taking  the  average  locomotive 
tractive  force  in  pounds  and  multiplying  by  the  total  locomotive  miles.  (This  prod- 
uct is  divided  by  1,000,000,  to  bring  the  unit  within  comprehension.) 

The  maintenance  costs  per  locomotive  tractive  mile  are  shown  herewith.  Fig.  11, 
for  the  same  roads  and  the  same  periods  as  shown  in  Fig.  10,  and  comparisons  be- 
tween the  two  tables  are  both  interesting  and  instructive. 

From  these  figures  the  annual  cost  per  tractive  mile  varies  from  $4.78  on  the 
B.  &  0.  in  1911  to  $13.78  on  the  Great  Northern  in  1908,  a  variation  of  188%. 

While  these  comparisons  serve  to  illustrate  that  the  generally  accepted  unit 
"mile  of  road"  is  valueless,  the  relative  comparisons  in  Fig.  11,  cannot  be  considered 
as  conclusive. 


1909 

1910 

1911 

$2729 

$3490 

$3422 

3032 

3603 

3813 

4135 

4998 

4873 

1988 

2391 

2589 

2200 

2630 

2319 

3713 

3536 

4350 

2246 

2416 

2532 

1716 

1923 

2160 

797 

837 

873 

832 

941 

1061 

1184 

1780 

1986 

3328 

3753 

4768 

7464 

9069 

8783 

1450 

1740 

1367 

1099 

1412 

1292 

994 

1151 

1059 

1490 

1681 

1668 

1336 

1835 

1591 

1591 

1692 

1653 

1310 

1623 

1321 

\ 


30 


KAILKOAD  OPERATING  COSTS 

fer  A7//e  of/?oa^. 


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Fig.  10 


MAINTENANCE  OF  WAY  AND  STRUCTURES  31 

Maintenance  of  Way  and  Structures 
Per  Locomotive  Tractive  Mile. 

1908  1909  1910  1911 

N.  Y.  N.  H.  &  H $  8.48  $9.07  $10.57  $10.02 

N.  Y.  Central 6.15  5.34  5.94  6.09 

Penn.  R.  R 6.19  6.22  6.52  6.33 

Erie    7.02  4.89  5.48  5.99 

B.  &  0 6.22  5.48  5.77  4.78 

D.  L.  &W 6.70  6.72  6.21  7.33 

Lehigh   Valley 6.00  6.06  5.70  5.79 

X.  &  W 5.19  5.29  4.91  5.36 

Atl.  Coast  Line 9.72  9.48  9.28  9.10 

Southern   5.79  5.35  5.50  5.84 

Lou.  &  Nash 7.33  6.39  8.62  9.19 

L.  S.  &M.  S 7.11  6.39  5.93  7.24 

p.  &L.  E 8.69  8.70  7.46  8.88 

C.  B.  &  Q 12.70  11.73  12.55  9.70 

C.  &  N.  W 7.97  8.03  8.58  7.72 

Frisco 7.39  7.69  7.97  7.01 

Union   Pac 9.46  8.25  8.43  8.34 

Santa  Fe  Sys 9.58  8.80  10.44  8.87 

Sou.  Pac.  Sys 1 2.27  10.81  10.33  10.03 

Grt.  Nothern 13.78  13.67  12.31  10.29 

The  topography  of  the  country  and  the  character  of  the  traffic  determining  the 
speed  of  trains,  and  the  extent  of  terminal  facilities,  must  be  given  full  considera- 
tion. The  influence  of  capital  expenditures  for  additions  and  betterments  are  also 
of  consequence,  since  these  expenditures  involve  the  policy  of  the  management  as 
regards  future  needs. 

The  principal  investment  in  a  railroad  is  in  its  roadway,  and  in  building,  re- 
building, or  extending  a  road  such  a  policy  should  be  adopted  as  will  balance  grow- 
ing traffic  capacity  and  lowered  operating  cost  against  larger  fixed  and  depreciation 
charges.  This  rule  applies  also  to  terminal  facilities  and  through  traffic  links  in- 
volving expensive  construction. 

A  study  of  the  maintenance  of  way  and  structures  expenditures  for  comparative 
purposes  must  be  sufficiently  comprehensive  to  include  all  influencing  factors.  It 
must  necessarily  cover  an  extensive  period  and  separately  consider  the  component 
items  of  this  division  of  operating  expenses.  Such  analytical  study  is,  however, 
left  for  future  consideration. 


32 


RAILROAD  OPERATING  COSTS 


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^      ^       /o     7?      7S     ^     7^ 


Maintenance  of   Equipment 


CHAPTER  III. 


In  point  of  magnitude,  maintenance  of  equipment  ranks  second  among  the 
items  entering  into  operating  expenses.  In  1901,  it  ranked  third.  The  relative 
proportion  of  the  main  divisions  of  expense  averaged  for  the  large  railroads  in  the 
years  1901  and  1910,  as  follows: 

1901  1910 

Maintenance  of  Way  and  Structures 22.3%  20.2% 

Maintenance  of  Equipment 18.6  22.7 

Conducting  Transportation 55.0  53.4 

General   Expense 4.1  3.7 


Of  all  the  main  divisions  of  expense  shown  above,  maintenance  of  equipment  is 
the  only  one  which  has  increased  in  ratio  to  total  operating  expense  during  the  ten- 
year  period  ending  with  1910.  This  increase  is  very  marked  and  in  strong  contrast 
to  corresponding  decrease  in  the  other  three  main  divisions  of  operating  expense. 

The  steadily  increasing  cost  of  maintenance  of  equipment  during  the  past 
decade,  as  reflected  by  the  above  figures,  is  as  conspicuous  as  the  corresponding  reduc- 
tions in  the  other  three  items  of  operating  expense.  The  component  charges  enter- 
ing into  maintenance  of  equipment,  such  as  labor,  material,  etc.,  are  also  common 
to  the  other  operating  items.  The  assertion  therefore  that  higher  labor  and  material 
costs  are  responsible  for  the  increasing  ratio  in  the  cost  of  maintenance  of  equip- 
ment to  total  operating  expense  does  not  hold  when  the  same  test  is  applied  to  con- 
ducting transportation  and  maintenance  of  way. 

That  definite  relations  exist  between  increasing  cost  of  maintenance  of  equip- 
ment and  decreasing  transportation  charges  is  clearly  reflected  through  analysis  of 
conditions.  Locomotives  and  cars  are  growing  larger  in  capacity,  obviously  reduc- 
ing the  number  of  power  units  required  to  handle  a  given  amount  of  traffic. 

The  ratio  of  maintenance  of  equipment  to  total  operating  expense  on  the  large 
roads  for  the  past  ten  years  is  shown  in  accompanying  table  and  graphically  in  Fig. 
12.  The  per  cent,  increase  in  maintenance  charges  to  the  total  compared  with  the 
year  1901  are  also  included  with  similar  information  for  four  representative  roads. 

33 


34 


KAILKOAD  OPERATING  COSTS 


Ratio  Maintenance  of  Equipment  to  Operating  Expense. 


Year 

All  Roads 

AU'hison 

Sou.  Pac. 

B.  &  0. 

P.  R.  R. 

1901 

18.67c 

21.37o 

12.2% 

19.77c 

23.67o 

1902 

19.1 

24.4 

19.3 

20.5 

23.4 

1903 

19.1 

22.8 

20.8 

21.5 

24.2 

1904 

20.0 

24.0 

21.9 

24.0 

23.7 

1905 

20.8 

24.6 

23.6 

24.3 

25.8 

1906 

21.4 

22.8 

23.8 

25.0 

26.0 

1907 

21.0 

21.3 

21.6 

24.2 

26.0 

1908 

22.1 

24.6 

20.6 

23.2 

26.1 

1909 

22.8 

25.2 
23.0 

23.0 
22.7 

22.3 
26.0 

26.1 

1910 

22.7 

26.0 

Per  cent.  Increase  in  Maintenance  of  Equipment  to  Operating  Expense 

Compared  with  the  Year  1901. 


Year 

All  Roads 

Atchison 

Sou.  Pac. 

B.&O. 

P.  R.  R. 

1902 

2.77c 

14.57o 

6.67o 

0.47c 

00.0  7o 

1903 

2.7 

7.0 

14.9 

9.1 

.01 

1904 

7.5 

12.7 

21.0 

21.8 

.04 

1905 

11.6 

15.5 

30.4 

23.3 

9.5 

1906 

15.0 

7.0 

31.5 

27.0 

10.2 

1907 

12.9 

00.0 

30.4 

23.0 

10.2 

1908 

18.8 

11.7 
18.2 

23.7 
39.2 

17.7 
13.2 

10.6 

1909 

22.6 

10.6 

1910 

22.0 

8.0 

25.4 

37.0 

10.2 

In  1901  equipment  on  the  large  roads  was  maintained  for  18.6  per  cent,  of  total 
operating  expense.  During  the  following  decade  the  percentage  increased  steadily, 
reaching  22.7  per  cent,  in  1910,  an  increase  of  nearly  25  per  cent,  over  the  figure 
in  1901.  The  same  conditions  in  varying  degree  are  reflected  in  the  records  of  the 
representative  railroads  shown.  The  Southern  Pacific  Company  maintained  their 
equipment  in  1910  for  22.7  per  cent,  of  total  operating  expense,  an  increase  of  25.4 
per  cent,  over  1901 ;  similarly  the  Atchison  for  23  per  cent.,  an  increase  of  8.0 
per  cent. ;  the  Baltimore  &  Ohio  for  26  per  cent.,  an  increase  of  32  per  cent.,  and  the 
Pennsylvania  Railroad  for  26  per  cent.,  an  increase  of  10.2  per  cent,  over  1901. 

Heavier  locomotives  and  larger  cars  are  more  expensive  to  maintain,  so  with 
the  advent  of  heavier  power  and  other  rolling  stock,  higher  maintenance  costs  are  to 
be  expected,  not  only  of  locomotives  hut  of  cars.  Improved  transportation  efficiency 
is  therefore  purchased  at  an  increase  in  maintenance  of  equipment  costs. 

An  almost  fixed  relationship  exists  between  weight  of  locomotives  and  tractive 
force,  so  the  latter  unit  then  can  be  taken  as  a  measure  of  the  size  or  weight  of  loco- 


MAINTENANCE  OF  EQUIPMENT 


35 


RflT/0  OF  nfiirfTEnmLOF  p^Rcmr  ihcrease  ornmrmnct 

tQUIPnEHT  TO  TOmL  OF  FQUIPnEflT  TO  TQT/iL  OFFR/ITm 

0PFRf{Tinc  EXP^ns^.  expehse:  oi/f/^  r^/iRm/. 

/\\^ra^e  of  Large  Roods. 


^^      02    '03     04    'OS    06      07    '08    '09     IS 


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Battimore  dr  Ohio. 

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01     02    '03    '04   'OS   '06   0?    '06     09    '10 


'03    'Of    'OS   '06    '07    '06    '09   '/O 


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'02    '03     '04    'OS    '06      '07    '06    '09     'W 


Socftfwn  Paciffc  Co. 

■30 


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Fi(3    1 2 


36 


BAILROAD  OPERATING  COSTS 


motives.     The  average  tractive  force  of  locomotives  from  1902  to  1910  with  the 
per  cent,  increase  compared  with  the  year  1902  is  shown  in  Fig.  13,  and  accompany- 


ing table. 


Tractive  Force 

Average  Per 
Locomotive, 
Year  Pounds 

1902 20,480 

1903 21,780 

1904 22,800 

1905 23,430 

1906 24,740 

1907 25,640 

1908 26,356 

1909 26,634 

1910 27,282 


Per  Cent.  Increase 
Compared  with 
1902 

00.0% 

6.3 
11.3 
14.4 
20.0 
25.2 
28.6 
30.0 
33.2 


There  is  also  a  remarkable  similarity  in  the  increase  of  capacity  of  freight  cars 
and  tractive  force  of  locomotives  for  the  period  between  1902  and  1910.  During 
this  time  the  capacity  of  freight  cars  has  increased  28.6  per  cent,  and  the  tractive 
force  of  locomotives  33.2  per  cent.  Cars  and  locomotives  have  steadily  grown  larger 
in  approximately  the  same  ratio  from  year  to  year. 

The  average  capacity  of  freight  cars  from  1902  to  1910,  with  the  per  cent, 
increase  compared  with  the  year  1902,  is  shown  in  Fig.  14,  and  accompanying  table. 


Capacity  of  Freight  Cars 

Per  Cent.  Increase 
Average  Per  Compared  with 

Year  Car,  Tons  1902 

1902 28  00.0% 

1903 29  3.6 

1904 30  7.1 

1905 31  10.7 

1906 32  14.3 

1907 34  21.4 

1908 35  25.0 

1909 35  25.0 

1910 36  28.6 

The  comparison  of  locomotive  tractive  force  and  freight  car  capacity  with 
maintenance  of  equipment  to  total  operating  expense  for  the  period  between  1901 
and  1910  (Figs.  12,  13  and  14)  establishes  a  close  relationship  between  maintenance 
costs  and  size  of  equipment.     Through  the  medium  of  larger  equipment,  lower  costs 


MAINTENANCE  OF  EQUIPMENT 

LocoMOTivz  Tf?acTivE  Force 


37 


Rverage  Tractive  Force 
in  lOqp  Lbs. 


Percent  Increase  Compared 

With  ms.. 


OZ.     03     '©4;       OS     06     '07      OS     09     '10 


'03     '04     -OS    '06    '07       06      09      \0 


Fig.  13 


of  conducting  transportation  are  secured,  entailing,  however,  increased  equipment 
charges  in  proportion  to  the  size  of  equipment. 

Maintenance  charges  for  large  equipment  are  greater  per  unit  on  account  of  in- 
creased size  of  locomotives  and  cars,  more  extensive  shops  and  terminals,  heavier 
machinery  and  modern  facilities  for  handling  and  repairing,  increased  wear  and 
tear  on  equipment  from  heavier  trains  and  the  various  other  items  coincident  with 
operation  of  heavier  power. 

In  the  maintenance  of  equipment,  the  topography  of  the  country  also  governs 
to  a  large  extent.  In  a  comparatively  level  countr}%  locomotives  are  of  medium 
size  with  large  driving  wheels  and  are  able  to  run  at  fairly  high  speeds,  while 
locomotives  in  a  mountainous  district  are  much  heavier,  are  equipped  with  small 
driving  wheels  and  must  run  at  slow  speeds,  thus  increasing  the  maintenance  of 
equipment  costs.  The  service  conditions  are  more  severe  upon  the  locomotives  and 
the  cost  of  locomotive  repairs  as  well  as  freight  and  passenger  car  repairs  are 
correspondingly  higher. 


Chprcity  of  Freight  Chrs. 

Rverage  Capacity  in  Tons. 


Percent  Increase  Compared 
With  )90Z, 


ox     03     e#  03     og    07  oa  o»     10 


03       O*     05      06      07       00  09       'to 


Fig.  14 


38 


RAILROAD  OPERATIXG  COSTS 


A  graphical  representation  is  given  herewith  (Fig.  15),  showing  the  difference 
in  size  of  locomotives  necessary  to  haul  the  same  train  on  level  track  and  on  a 
heavy  grade. 

The  cost  of  locomotive  maintenance  and  operation  is  from  50%  to  G0%  higher 
on  the  territory  with  heavy  grades  than  where  grades  are  a  negligible  quantity,  even 
though  the  capacity  of  the  locomotives  on  the  grades  may  be  much  greater. 

The  mileage  made  by  heavy  mountain  locomotives  is  manifestly  lower  than 
locomotives  running  in  a  prairie  country.  The  large  consolidated  and  Mikado  freight 
locomotives  in  mountain  service  average  about  •^,000  miles  per  month  as  compared 
with  3,000  or  3,500  miles  per  month  made  by  freight  locomotives  in  a  prairie  coun- 
try. It  is  therefore  decidedly  unfair  to  compare  locomotive  maintenance  costs  on 
a  mileage  basis  only. 

To  contribute  a  graphical  representation  of  the  difference  in  the  topography  of 
level  and  mountainous  districts,  portions  of  profiles  are  given  (Fig.  16).  Under  the 
profile  illustration  of  the  level  country  is  shown  the  density  of  traffic,  with  the 
cost  of  locomotive  repairs  and  fuel  per  1,000  gross  ton  miles.  Beneath  the  profile 
illustrating  the  mountainous  section  is  shown  the  same  information,  also  the  cost 
of  repairs  and  fuel  for  a  twelve  months  period. 

On  the  level  country  the  density  of  freight  traffic  was  70.1%  greater  than  on  the 
mountainous  country.  From  the  following  statement,  tabulated  from  official  data, 
it  is  evident  that  locomotive  expenses,  repairs,  and  fuel  are  59.1%  greater  in  the 
mountainous  country  than  in  the  level  country. 


Graphical   Kkpbesentatiox  of  Difference  in  Size  of  Locomotives  Hauling  Same  Train 

ON  Level  and  on  Grade 

Fio.  15 


MAIXTEXAXCE  OF  EQUIPMENT  39 

Cost  of  Freight  Locomotive  Repairs  and  Fuel  ix  Level  and  Mountainous 

Country  for  12  Months  Period 


Level  Country 

1000  Gross  Ton  Miles 5,300,827 

Density  of  Traffic,  per  mile,  1000  G,  T.  M 6,884 

Total  Cost  of  Locomotive  Repairs  and   Fuel $1,396,729 

Cost  of  Locomotive  Repairs  and  Fuel  per  1000  G.  T.  M 0.264 


Mountainous  Country 

1000  Gross  Ton  Miles 4,049,015 

Density  of  Traffic,  per  Road  Mile,  1000  G.  T.  M 4,049 

Total  Cost  of  Locomotive  Repairs  and  Fuel $1,699,182 

Cost  of  Locomotive  Repairs  and  Fuel  per  1000  G.  T.  M 0.420 

At  Traffic  Density  in  level  country,  increased  cost  of  Repairs  and 

Fuel    would    be $1,190,000 


Fig.  1« 


F* 


40 


RAILKOAl)  OPERATING  COSTS 


Cost  of  Locomotive  Hej>aihs  and  Fuel  in  Level  and  Mountainous  Country. 

Main  Line  Freight — 12  Months  Period. 


Level 
Country 

Total  1,000  Gross  Ton  Miles 5,300,827 

Eoad    Mileage ttO 

Density  of  Traffic,  per  Road  Mile  1000  Gross 

Ton  Miles (5,884 

Total  Cost  of  Repairs $    590,689 

Total  Cost  of  Fuel 797,040 

Total    $1,396,729 

Cost  of  Repairs,  per  Road  Mile $  799 

Cost  of  Fuel,  per  Road  Mile 1,035 

Total    $        1,814 


Cost  of  Repairs  and  Fuel,  1000  G.  T.  M ^ 

Increased  Cost  of  Repairs  and  Fuel  on  1000 
G.  T.  M.  basis  of  mountainous  over  level 
country    

Per  Cent.  Increase  per  1000  G.  T.  M 

Cost  per  Road  Mile  at  Traffic  Density  of  Level 
country    

Increased  Cost  per  Road  Mile 

If  business  were  increased  70.1%  on  the  moun- 
tainous country,  so  that  the  density  of 
traffic  should  be  as  great  as  on  the  level 
country,  the  increased  cost  for  locomotive 
repairs  and  fuel  would  be  1,190  x  1,000  or 


264 


ro.i7o 


Mountainous 
Country 

4,049,015 
1,000 

4,049 

$    647,886 

1,051,296 

$1,699,183 

$  648 

1,051 

$        1,699 

$  420 


$    631,646 


$       2,889 
$        1,190 


$1,190,000 


The  expenditure  for  Maintenance  of  Equipment  on  the  Burlington  in  1910 
amounted  to  $1,669  per  mile  of  road  as  compared  with  $921  in  1902;  however,  in 
the  meantime,  the  tonnage  handled  per  mile  of  track  nearly  doul)led.  During  the 
same  period,  the  weight  of  locomotives  increased  40  per  cent,  and  the  average  capac- 
ity of  freight  cars  increased  from  24.7  tons  to  33.6  tons  or  36  per  cent. 

The  great  extremes  that  exist  in  Maintenance  of  Equipment  expenditures  (and 
undoubtedly  each  is  justified  in  the  ex})enditure)  are  shown  on  the  Minneapolis 
&  St.  Louis  with  a  ten-year  average  of  $500  per  mile  of  road  as  compared  with  the 
Philadelphia  &  Reading,  which  expended  $5,932  per  mile  of  road  during  the  same 
period.     To  look  at  these  figures  alone  one  would  say  that  the  Philadelphia  &  Read- 


MAINTEXANCE  OF  EQUIPMENT 


41 


ing  spent  twelve  times  as  much  money  annually  as  was  necessary  for  Maintenance  of 
Equipment,  which  inference  is  of  course  absurd. 

Again  the  nature  and  character  of  traffic  has  much  to  do  with  Maintenance  of 
Equipment  costs.  The  Burlington,  for  example,  has  its  so-called  "stock  rush," 
where  a  great  volume  of  stock  must  be  transported  at  high  speed.  Often  consign- 
ments of  20  or  25  cars  are  received  that  cannot  wait  for  other  cars  to  make  a  full 
train,  which  results  in  high  costs.  On  the  other  hand  about  two-thirds  of  the  ton- 
nage of  the  Lackawanna  is  made  up  from  the  products  of  mines,  which  can  be 
liauled  in  large  capacity  cars  at  low  speeds,  resulting  in  remarkably  low  costs. 

The  Southern  Pacific  presents  another  example  of  the  same  nature.  A  great 
deal  of  their  business  consists  of  fruit  from  Southern  California,  which  must  be 
iiandled  when  the  consignments  are  iced  and  ready  to  go  and  must  run  at  high 
speed.  This  causes  a  heavy  traffic  east-bound  with  a  correspondingly  light  movement 
west.  The  Great  Northern,  however,  has  a  steady  slow  freight  business,  carrying 
wheat  west  and  lumber  east-bound,  thereby  being  able  to  make  a  much  better  show- 
ing than  the  Southern  Pacific  in  equipment  maintenance  costs. 

It  is  therefore  evident  that  the  employment  of  the  unit  "per  mile"  of  road  for 
comparing  Maintenance  of  Equipment  performance  without  special  reference  to 
operating  conditions,  and  character  and  volume  of  business,  is  meaningless  and  of 
doubtful  value. 

The  same  thing  may  be  said  of  the  comparisons  of  total  Maintenance  of  Equip- 
ment per  locomotive  mile,  inasmuch  as  increased  tonnage  per  engine  mile  may 
decrease  the  cost  of  operation  per  ton  mile,  but  will  increase  the  maintenance  cost 
per  locomotive  mile  so  that  each  of  the  several  divisions  must  be  subjected  to  a 
separate  analysis. 

The  gross  tons  hauled  one  mile  is  a  fair  and  equable  unit  to  use  as  a  basis  in 
computing  maintenance  costs.  Although  the  gross  ton  mile  is  made  use  of  on  some 
railroads,  the  published  statements  and  the  Interstate  Commerce  Commission  reports 
do  not  show  this  very  important  figure,  nor  do  railroads  generally  use  it  for  a 
basis  of  computation.  The  figure  used  is  the  revenue  ton  mile,  which  may  be  the 
all-important  figure  when  considered  financially,  but  it  is  not  the  basis  which  should 
be  used  when  considering  maintenance  of  equipment  costs. 

Many  roads,  necessarily,  haul  company  material  long  distances.  Locomotive 
fuel,  for  example,  on  the  Southern  Pacific  amounts  to  8,000  net  tons  per  day  and  is 
carried  in  many  instances  300  or  400  miles  with  a  corresponding  empty  car  mileage 
back.  The  Pennsylvania  mines  its  coal  on  the  line  of  road  and  hauls  it  but  a  few 
miles.  Iron  products  of  all  kinds,  rails,  boiler  steel,  car  wheels,  axles,  shop  machin- 
ery and  tools,  all  go  to  make  a  heavy  tonnage  for  long  distances  on  western  roads 
which  constitute  non-revenue  freight  and  consequently  do  not  appear  to  the  credit 
of  the  locomotives  which  do  the  work  of  hauling.  It  is  thus  manifestly  unfair  to 
compare  maintenance  costs  of  western  roads  with  eastern  roads  on  a  revenue  ton 
mile  basis,  but  it  would  be  reasonably  fair  if  the  gross  ton  miles  were  used. 

Operating  conditions  on  the  railroads  east  of  Chicago  are  along  fixed  and  tried 
lines,  while  the  west  is  in  a  more  or  less  new  and  unsettled  condition.  Labor  in  the 
west  is  scarce  and  generally  of  poor  quality.  It  is  therefore  necessar}'  to  pay  higher 
wages  in  order  to  attract  the  better  class  of  labor  from  the  east. 


42 


RAILROAD  OPERATING  COSTS 


As  the  labor  cliarge  constitutes  more  than  one-half  the  maintenance  costs  of 
equipment,  the  higher  wages  paid  on  western  roads  will  be  reflected  directly  in  the 
total  when  comparisons  are  made  with  eastern  roads.  Metal  workers,  wood  workers, 
and  miscellaneous  shop  labor  include  most  of  the  employees  in  the  locomotive  and 
car  shops  and  fairly  represent  the  general  labor  situation. 

The  total  figures  taken  from  the  Interstate  Commerce  Commission  records, 
separated  into  eastern  and  western  roads,  are  shown  in  chart  form  in  Fig.  17,  with 
actual  figures  as  follows : 


Wages  per  Hours. 

Eastern 
Roads 

Metal  Workers $0,265 

Wood  Workers 226 

Miscl.  Shop  Labor 197 


Western 
Roads 

$0,327 
.253 
.215 


PerCent.  Increase 
Western  Over 
Eastern  Roads 

23% 
U 
9 


This  marked  increase  of  23  per  cent,  in  wages  paid  metal  workers  on  western 
roads  is  a  most  important  item  and  should  be  given  due  weight  when  comparisons 
are  made  between  eastern  and  western  roads. 

It  is  obvious  that  any  comparison  of  maintenance  of  equipment  expenses  be- 
tween any  two  roads  must  necessarily  include  a  comprehensive  analysis  of  all  influ- 
encing factors.  It  is  also  apparent  that  no  single  comparative  unit  can  be  estab- 
lished that  will  reflect  true  conditions  of  maintenance  of  equipment  expense  as  a 


/r^fmot  RATE  PER  HOUR  P/lID  MR/OUS  fflPLOrEE^S  OPf 

RfllLR0AD3, 
East  and  W'est  ofChfca^. 


m. 


mi 


moo  mrnms.  ^^^^f 


/^JZ 


n/jcfLL/ffieous  mif 


/s 


20 


2^ 


JO 


J^ 


Fig.  i; 


MAINTENANCE  OF  EQUIPMENT 


43 


/iA//iTtmrfct  or ^6i(//PMEfir. 

Si/My/'j/^/?  of /Expense. 

/9// 


/i£PAIfi5  Afl/OmmLS. 

Locomwc 

/f£PAIR5  AND  /(fZ/ff/AlS. 

DPFPfc/ATm  or 
rau/mrfir. 

rAssr/rcrR  car 
RmmA/io  /tf/yrms 


smpmc/zKAmmi 


5UP£Ky/5/0/r. 


/^/SCniA/y£0l/3  A/YD  p 

0/7/r/^  fxrr/Ysrs.     "^ 


^1 


37. 


Fig.  18 


44  RAILROAD  OPERATING  COSTS 

whole,  since  any- change  in  the  size  and  design  of  locomotive  and  cars  may  exert  such 
influence  on  the  maintenance  costs  as  to  destroy  the  comparative  value  on  the  same 
road  for  different  periods. 

The  total  expenditures  for  maintenance  of  equipment  on  the  railroads  in  the 
United  States  during  the  fiscal  year  1911  were  subdivided  as  follows  (Fig.  18) : 

Freight  Cars  (Repairs  and  Renewals) 37% 

Locomotives  (Repairs  and  Renewals) 35% 

Depreciation  of  Equipment 1^% 

Passenger  Cars  (Repairs  and  Renewals) 8% 

Shop  Machinery  and  Tools 3% 

Supervision   3% 

Miscellaneous  and  other  Expenses 2% 

While  the  charges  for  depreciation  of  e<iuipment  constitute  12%  of  the  total 
charges  for  maintenance  of  equipment,  these  studies  of  maintenance  costs  have  been 
confined  entirely  to  the  expenditures  for  repairs  and  renewals,  as  they  permit  of  more 
accurate  comparisons. 

Each  individual  item  of  maintenance  of  equipment  expenses  must  be  subjected 
to  a  separate  analysis  and  an  individual  comparative  unit  established,  if  necessary, 
to  enable  true  conditions  to  be  reflected. 


I 


\ 


Freight  Car  Maintenance 


CHAPTER  IV 


The  repairs  and  renewals  of  freight  cars,  usually  regarded  by  railroad  officials 
as  an  item  of  secondary  importance  in  the  maintenance  of  equipment  expenditures, 
is  the  largest  single  item  of  these  expenses. 

In  1911  these  expenditures  consumed  37  per  cent,  of  the  total  maintenance  of 
equipment  and  8.4  per  cent,  of  the  total  operating  expenses  of  all  the  railroads  in  the 
United  States,  as  compared  with  the  repairs  and  renewals  of  locomotives  which 
consumed  35  per  cent,  of  the  maintenance  of  equipment  and  8.0  per  cent,  of  the 

total  operating  expenses. 

The  percentage  of  operating  expenses  devoted  to  the  maintenance  of  freight 
cars  fluctuated  on  the  individual  railroads  during  1911  from  3.8  per  cent,  on  the 
New  Haven  to  14.9  per  cent,  on  the  Reading.  There  were  thirteen  railroads,  dur- 
ing this  period  where  this  percentage  was  in  excess  of  10  per  cent.,  while  there  were 
only  eight  railroads  where  the  maintenance  of  locomotives  was  above  that  figure, 
which  further  emphasizes  the  greater  importance  of  freight  car  maintenance. 

Continuing  the  comparison  further,  it  is  found  that  freight  car  maintenance 
amounted  to  180  per  cent,  of  the  locomotive  maintenance  on  the  Pittsburg  &  Lake 
Erie;  150  per  cent,  on  the  Chesapeake  &  Ohio;  147  per  cent,  on  the  L.  S  &  M.  S.; 
142  per  cent,  on  the  Michigan  Central ;  133  per  cent,  on  the  Burlington.  In  con- 
trast with  this,  it  amounted  to  but  65  per  cent,  of  the  maintenance  of  locomotives 
on  the  New  Haven,  61  per  cent,  on  the  Union  Pacific;  54  per  cent,  on  the  Santa  Fe 
and  43  per  cent,  on  the  Missouri  Pacific. 

From  this  study  of  the  maintenance  costs  on  the  various  railroads,  it  is  very 
evident  that  the  maintenance  of  freight  cars  is  entitled  to  the  same  consideration  as 
that  usually  accorded  to  the  maintenance  of  power  units.  That  repairs  and  renewals 
of  freight  cars  is  usually  relegated  to  a  relatively  unimportant  place  in  the  mainte- 
nance of  equipment  expenses,  is  evident  from  the  absence  of  comparative  units, 
permitting  these  costs  to  be  checked  up  in  a  regular  manner  as  in  the  case  of  mainte- 
nance of  locomotives. 

With  these  costs  averaging  8.5  per  cent,  of  the  total  operating  expenses  of  all 
of  the  railroads  in  the  country,  and  on  individual  railroads  reaching  as  high  as  14.9 
per  cent.,  it  appears  that  these  expenditures  are  of  suflScient  consequence  to  be  given 
a  detailed  study.  To  permit  performance  records  to  be  checked  up  for  various 
periods,  a  proper  comparative  unit  should  be  determined  in  order  that  these  com- 
parisons can  be  of  value. 

The  common  method  of  comparisons  of  these  maintenance  costs  is  the  average 
annual  expenditure  per  freight  car  owned,  which  figures  are  always  given  consider- 
able prominence  in  the  annual  reports  of  railroad  presidents  and  in  railroad  journals 

45 


4(; 


IJAILROAD  OPEHATLXG  COSTS 


analysing  maintenance  expenses.  Accompanying  cliart.  Fig.  19,  is  shown  herewith 
illustrating  the  cost  per  freight  car  owned  on  a  majority  of  the  leading  railroads  for 
the  year  1911,  as  follows: 

Maintenance  of  Freight  Cars— Per  Freight  Car  Owned 


1911 


N.Y.  N.  H&H $  40.34 

B.  &  M 65.84 

N.  Y.  Central 111.39 

Penn.  R.  R 69  42 

D.  L.&W 57.66 

L.  V 53.77 

D- &  H 59.75 

C.  R.  R.  of  N.  J 54.48 

P.  &  R 96.87 

Erie 60.11 

B-  &  0 61.11 

LE.  &\V 125.65 

P.  &  L.  E 41.41 

Penn.  Co 64.46 

P.  C.  C.  &St.  L 114.82 

L.  S.  &  M.  S 71.13 

Mich.    Central 88.80 

Pere  Marq 56.32 

C.  C.  C.  &St.  L 100.20 

Yandalia 83.33 


^'  &  0 $  65.64 

N.  &  W 63.84 

Atl.  Coast  Line 63.64 

Seab.  Air  Line 60.26 

Southern 69.29 

111.   Central 83.45 

L.  &  N 74.96 

Nash.  C.  &  St.  L 74.26 

Mob.  &  Ohio 71.43 

C' &  A 71.13 

C.  B.&Q 93.00 

C.  R.  L  &  P 76.96 

Frisco   62.19 

C.  M.  &  St.  P 80.54 

Union   Pacific 108.21 

Colo.  &  Sou 69.08 

D&  R.  G 70.98 

Santa  Fe 78.05 

Sou.   Pac 112.31 

Nor.    Pac 55.01 


From  this  table  it  is  noted  that  the  cost  per  freight  car  owned  varies  from 
$40.34  on  the  New  Haven  to  $125.65  on  the  L.  E.  &  W.  If  the  cost  per  car  owned 
is  the  proper  comparative  unit,  to  be  used,  then  the  maintenance  of  freight  cars  on 
the  L.  E.  &  W.  during  1911  was  more  than  three  times  the  necessary  expenditure. 

Again  taking  two  trunk  lines  operating  in  the  same  general  territorv,  the  Santa 
Fe  with  maintenance  of  $78.75  per  freight  car  owned  and  the  Northern  Pacific  with 
$55.01  per  car  owned.  If  the  cost  per  car  is  the  proper  unit,  then  the  Santa  Fe 
should  be  able  to  effect  a  reduction  of  30  per  cent,  in  freight  car  maintenance  for  the 
year  1911,  with  Northern  Pacific  figures  used  as  a  standard.  Also  the  Santa  Fe 
should  reduce  their  freight  car  maintenance  48  per  cent,  if  the  performance  of  the 
New  Haven  is  taken  as  a  standard. 

It  is  very  evident  there  are  several  important  factors  entering  into  the  mainte- 
nance of  freight  cars,  which  will  modify  the  value  of  the  unit  "freight  car  owned," 
i.  e.,  the  total  number  of  cars  owned,  the  average  capacity  of  the  cars  and  the 
average  miles  run. 

Two  railroads  handling  the  same  tonnage  during  the  same  period  of  time,  may 
with  reason  be  expected  to  have  equal  expenditures  for  maintenance  of  freight  cars. 


FREIGHT  CAR  MAINTENANCE 

nflifiTmna  orr/^mnTcms 

Per  Freight  Car  Oivr^d. 
1911. 


47 


DoannsrO 


/5r/y/y>7./?/p. 

BXrO. 

/r/T/T/r.  CO. 

/^CCSrSU. 

/7/m  cmr 

ccc^sn 
/mo/u/A. 

M.cj^/r 
ijScfi 

m5H.CS^5T.L 

rro&grott/o. 

CP/I, 

cBsta 

FR/^CO. 
cnS'STF. 
U/y/O/Y  FAC. 

coio.psoa 

a3rRG 

5/i/fr/f /r  5ys. 
sou.FAC.^rs. 

//OR.  FRC. 


DOU/i/iS.'O 


eo    90     100     no    /20    t30 


H 


:fe 
ft  J 


00      90      /OO     J/0     /2a    /30 


Fig.  19 


48 


RAILROAD  OPERATING  COSTS 


They  may,  however,  due  to  different  policies  in  the  purchasing  of  equipment,  estimat- 
ing of  equipment  requirements,  unexpected  change  in  character  of  volume  of  traffic, 
have  considerahle  variation  in  the  numher  of  freight  cars.  It  follows,  therefore,  that 
the  railroad  with  the  greater  numher  of  cars  will  have  the  lesser  cost  per  car,  which, 
if  this  standard  be  correct,  is  indicative  of  higher  efficiency  in  management. 

For  example;  the  freight  traffic  density  (100,000  revenue  ton  miles  per  mile  of 
track)  in  1911  on  the  L.  E.  &  W.  was  7.32  and  on  the  New  Haven  7.45,  which 
indicates  the  volume  of  freight  business  on  these  two  roads  to  l>e  similar.  Further 
investigation  shows  that  the  New  Haven  owned  38,783  cars  with  3,079  miles  of 
total  track  (exclusive  of  all  yards  and  sidings),  and  the  L.  E.  &  W.  owned  3,840 
cars  with  895  miles  of  total  track.  From  these  figures  it  is  apparent  that  the  L.  E. 
&  W.  with  29  per  cent,  of  the  mileage  of  the  New  Haven  and  a  similar  traffic  den- 
sity owns  less  than  10  per  cent,  of  the  number  of  freight  cars  possessed  by  the  New 
Haven. 

Again,  one  railroad  may  have  a  few  cars  and  a  high  average  mileage,  thus  hand- 
.  ling  the  same  volume  of  business  as  another  railroad  having  a  larger  number  of  cars 
and  a  small  average  mileage. 

Average  Capacity  of  Freight  Cars 


1911 


Tons 

N.  Y.  N.  H.  &  H 32.30 

B.  &  M 29.70 

N.  Y.  Central 36.60 

Penn.  R.  R 44.90 

D.  L.  &  W 32.90 

Leh.  A^alley 36.40 

D.  &H.... 36.78 

C.  R.  R.  of  N.J 37.22 

P.  &  R 35.20 

Erie 37.50 

B.  &  0 39.20 

L.  E.  &  W 32.04 

P.  &  L.  E 41.18 

Penn.  Co 43.40 

P.  C.  C.  &  St.  L 45.30 

L.  S.  &  M.  S 41.20 

Mich.    Central 35.35 

Pere  Marq 33.49 

C.  C.  C.  &  St.  L 35.94 

Vandalia 43.44 


Tons 
C.  &  0 43.40 

N.&W 44.35 

Atl.  Coast  Line 28.72 

Scab.  Air  Line 33.95 

Southern 35.10 

III.   Central 38.40 

L.  &  N 35.20 

Nash.  C.  &  St.  L...' 31.02 

Mob.  &  Ohio 34.14 

C.  &  A 40.00 

C.  B.  &Q 36.30 

C.  R.  I  &  P 35.40 

Frisco   37.50 

C.  M.  &  St.  P 31.80 

Union  Pac 39.10 

Colo.  &  Sou 33.96 

D.  &  R.  G 35.23 

Santa  Fe  Sys 32.10 

Sou.  Pac.  Sys 40.40 

Nor.   Pac 35.60 


Continuing  the  study  between  the  railroads  that  have  been  previously  mentioned, 
we  find  that  the  average  mileage  per  freight  car  in  1911  on  the  L.  E.  &  W.  was 
13,547  miles  and  on  the  New  Haven  5,530  miles.     If  the  freight  cars  on  the  New 


FREIGHT  CAR  MAINTENANCE 


m/^mj^  cmc/TK  orrRa6/iT  cAm. 


49 


m. 


nrce/mr. 

IV 

/v/r/r/i  CO. 
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C.ii^O. 

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I       1 


I       I 


I       I 


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I 


/6    /a  20  22  24  26 


Fig.  20 


J4  J6  JS 


I 


9: 


«  44    4S 


50 


KAILROAD  OPERATING  COSTS 


Haven  had  made  the  same  average  mileage  as  those  on  tlie  L,  E.  &  W.,  tlie  number 
of  cars  required  for  the  Xew  Haven  would  have  been  so  reduced  as  to  make  the  main- 
tenance per  freight  car  for  1911  equal  to  $99.00  in  place  of  $40.34,  which  figures 
would  indicate  an  entirely  different  condition  with  reference  to  efficiency  in  freight 
car  maintenance  than  that  inferred  in  the  first  paragraph. 

From  this  it  would  appear  that  the  remarkably  low  cost  on  the  New  Haven  as 
compared  with  the  high  cost  on  the  L.  E.  &  W.,  in  place  of  reflecting  economy  in 
one  case  and  extravagance  in  the  other,  is  only  conclusive  evidence  that  the  mainte- 
nance "per  freight  car  owned"  is  useless  as  a  comparative  unit. 

The  average  capacity  of  freight  cars  on  the  various  railroads  must  be  taken 
into  consideration  in  any  analysis  as  larger  cars  carrying  greater  weight  must  neces- 
sarily require  higher  expenditure  for  maintenance  on  a  "per  car  owned"  basis. 

Miles  Per  Freight  Car  Owned 
1911 


Miles 

N.  Y.  N.  H&H 5,520 

B.  &  M 8,599 

N.  Y.  Central 11,913 

Penn.  R.  R 7,856 

D.  L.  &W 8,638 

Leh.  Valley 7,323 

D.  &H.... 7,710 

C.  R.  R.  of  N.  J 6,173 

P.  .S-  R 7,192 

Erie 8,554 

B.  &  0 8,869 

L.  E.  «&  W 13,547 

P.  «S;L.  E 4,009 

Penna.  Co 7,016 

P.  C.  C.  &  St.  L 12,650 

L.  S.  &M.  S 8,375 

Mich.   Central 11,402 

Pere  Marq 8,029 

C.  C.  C.  &  St.  L 11,715 

Vandalia 9,119 


Miles 

C.  &  0 7,750 

N.  &  W 9,517 

Atl.  Coast  Line 8,340 

Seab.  Air  Line 8,991 

Southern 7,948 

111.    Central 9,021 

L.  &  N 8,861 

Nash.  C.  &  St.  L 8,412 

Mob.  &  Ohio 10,820 

C.  &  A 9,817 

C.  B.  &Q 11,765 

C.  R.  I.  &  P 10,860 

Frisco   7,665 

C.  M.  &  St.  P 11,428 

T'nion  Pac 19,521 

Colo.  &  Sou 6,125 

D.  &R.  G 5,765 

Santa  Fe  Sys 12,858 

Sou.  Pac.  Sys 11,859 

Nor.   Pac 7,911 


While  the  average  freight  car  capacity  of  32.3  tons  on  the  New  Haven  compares 
favorably  with  32.04  tons  on  the  L.  E.  &  W.,  this  similarity  is  not  in  evidence  when 
all  the  leading  railroads  are  considered. 

A  chart.  Fig.  20,  and  accompanying  data  show  the  average  capacity  of  freight 
cars  on  40  roads  for  the  year  1911.  The  capacity  varies  from  28.7  tons  on  the  At- 
lantic Coast  Line  to  45.3  tons  on  the  P.  C.  C.  &  St.  L.,  a  difference  of  approximately 
58  per  cent. 


FREIGHT  CAR  MAINTENANCE 

/1/LC5  FCR  rmctfT  cm  ov//m 

I9H. 


51 


/    z 


5      6       7      Q      9     /O     II    tZ     /3    M-    15    t6     17     fO    /9    20 


nrccHT. 
cK/^.or/r.Kj. 

F.S^R. 
33^0. 

p£rr/r/i.co. 
prc^6U. 

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FtF£:  /7/IFa 
/JTL  C0/l5Tl/m 

dcm.mu/rc 
/u.  ccrfT. 

noe.^o/i/a 

C3S^. 
CF/JkF 

rmco. 

Cn^STF 

umofi  F/jc 

COiO.S-JOi/. 
50U.F/\C.5r3. 

noRF/\c. 


8     9     /O     // 
/OOO  ATiZ/rJ. 


/Z    /^    /f-    /S  /6   /7   /8    /9    ZO 


Fig.  21 


52 


RAILROAD  OPERATING  COSTS 


The  yearly  mileage  per  freight  car  owned  is  presented  in  Fig.  21,  and  shows  a 
variation  from  4,009  miles  on  the  P.  &  L.  E.  to  19,521  miles  on  the  Union  Pacific— 
a  difference  of  388  per  cent. 

These  charts  serve  to  illustrate  that  the  maintenance  costs  "per  car  owned"  are 
useless  for  comparative  purposes.  The  variation  in  the  amount  of  equipment  owned 
will  also  render  comparisons  on  this  basis  valueless  either  between  roads  or  for  dif- 
ferent periods  on  the  same  road. 

In  order  to  permit  a  comparison  of  the  amount  of  freight  car  equipment  among 
these  various  railroads,  the  number  of  freight  cars  owned  per  mile  of  total  track 
(exclusive  of  yards  and  sidings),  is  shown  and  illustrated  in  Fig.  22.  This  number 
varies  from  3.8  cars  per  mile  on  the  Union  Pacific  to  47.95  cars  on  the  Pittsburg 
&  Lake  Erie. 

Freight  Cars  Owned  Per  Mile  of  Track 

1911 


Cars 

N.  Y.  N.  H.  &H 12.60 

B.  &M 9-21 

N.  Y.  Central 11.9G 

Penn.  R.  R 23.33 

D.  L.  &  W 20.04 

Leh.  Yallev 20.84 

D.&H 16.80 

C.  R.  R.  of  X.  J 23.70 

P.  &R , 26.16 

Erie 16.37 

B.  «&:  0 15.57 

L.  E.  &  W 4.29 

P.  &  L.  E 47.95 

Penn.  Co 24.58 

P.  C.  C.  &St.  L 11.63 

L.  S.  &M.  S 18.23 

Mich.   Central 10.25 

Pere  Marq '^•22 

C.  C.  C.  &St.  L 10.26 

Yandalia 10.07 


Cars 

C.  &0 16.67 

N.  &  W 17.38 

Atl.  Coast  Line 5.49 

Seal).  Air  Line 4.90 

Southern 7.03 

III.   Central 11.16 

L.  i&X 9.36 

Xash.  C.  &  St.  L 8.32 

Mob.  &  Ohio 9.53 

C.  &A 9-85 

C.  B.  &Q 5.26 

C.  R.  I&P 5.24 

Frisco 6.51 

C.  M.  &  St.  P 5.48 

Union  Pac 3.80 

Colo.  &  Sou 6.88 

D.  &'  R.  G 6.78 

Santa  FeSys 4.96 

Sou.  Pac.  Sys 4.60 

Xor.   Pac 6.28 


The  amount  of  equipment  per  mile  of  track  is  of  no  value  without  data  reflect- 
ing the  value  of  business  and  for  this  purpose  the  following  comparative  figures, 
i.  e.,  100,000  revenue  ton  miles  per  mile  of  total  track  is  submitted  with  illustration 
Fig.'  23.  '  This  table  shows  a  fluctuation  in  freight  traffic  density  between  3.83  on  the 
Atlantic  Coast  Line  and  39.1  on  the  Pittsburg  &  Lake  Erie. 

The  value  of  the  unit  "per  mile  of  total  track"  (exclusive  of  yards  and  sidings), 
emploved  to  designate  the  traffic  density  of  any  road  as  compared  with  the  unit 


FREIGHT  CAR  MAIXTEXAXCE  53 

numcR  or rmoHT  cms  oi/z/cD 

Per  Pfi/e  of  Total  TracA. 

m 


0    2     4     6     e    /O    a    ff    /e    W  20  Z^  if  26  Zd  30  3Z  34  36  33  40  42  4f    46  43 


/rrcjyrr 

JL/TJti/ 

yvm/f.  CO 
/7/CH.  ar/rr 

CCCd'Sr.L 

c.i^a 

n.srw. 

/jTi  COAST unc 

50UrM£Rtf 
iU.C/^/fT 

/r/t3^.Cif5TL 

msi^o/fw. 

cAJP-a 

r/?/sco 
cnsf-ST/> 
m/o/r  A/ic . 

COIO^SO(/ 

5/f/yr/i  r/^  jrs. 
soi/F/fcsrs. 

/YO/f  F/fC 


I 


h   U  /6    k  20  22  24  2S  26  3a  32  34  36  36  -fO  4ii   44    ^  48 

Fig.  22 


54 


RAILROAD  OPERATING  COSTS 


"per  mile  of  road"  employed  in  Chapter  I,  can  be  better  appreciated  by  a  study  of 
the  two  charts  illustrating  the  volume  of  business  by  means  of  the  two  units. 

The  one  "per  mile  of  road"  using  the  geogi-aphical  mileage,  takes  no  account  of 
the  additional  trackage  of  a  two,  three  or  four  track  road,  while  the  other  "per  mile 

Freight  Traffic  Density— 100,000  Revenue  Ton  Miles  per  Mile  of  Track 

1911 


N.  Y.  N.  H.  &H 7.45 

B.  &M 8.23 

N.  Y.  Central 15.90 

Penna.  R.  R 31.13 

D.  L.  &  W 25.27 

L.  V 22.98 

D.  «&H 20.75 

C.  R.  R.  of  N.  J 23.70 

Phila.  &  Read 28.51 

Erie 20.01 

B.  &  0 20.18 

L.  E.  &  W 7.32 

P.  ifeL.  E 39.10 

Penna.  Co 11.14 

P.  C.  C.  &  St.  L 19.28 

L.  S.  &M.  S 21.15 

Mich.   Central 12.74 

Pere  Marq 7.27 

C.  C.  C.  &  St.  L 15.18 

Vandalia 12.42 


C.  «&  0 23.65 

N.  «fe  W 28.38 

Atl.  Coast  Line 3.83 

Seab.  Air  Line 4.18 

Southern 5.43 

111.   Central 12.47 

L.  &  N 10.62 

Nash.  C.  i&St.  1 6.83 

Mob.  &  Ohio 11.96 

C.  &  A 12.48 

C.  B.  &  Q 7.25 

C.  R.  L«&P 5.73 

Frisco   5.41 

C.  M.  &  St.  P 6.48 

Union  Pac 8.85 

Colo.  &  Sou ' 6.35 

D.  &  R.  G 5.14 

Santa  Fe  Sys 6.55 

Sou.  Pac.  Sys 6.40 

Nor.    Pac 6.89 


of  track"  considers  all  trackage  except  that  employed  for  yards  and  sidings.  The 
value  of  the  latter  unit  is  readily  apparent. 

In  an  endeavor  to  take  into  consideration  the  volume  of  business,  another  unit 
has  been  used  to  a  limited  extent  in  comparing  the  maintenance  of  freight  cars,  i.  e., 
the  cost  per  1000  revenue  ton  miles,  and  the  following  table  and  chart,  Fig.  24, 
shows  the  maintenance  costs  on  this  basis  for  the  same  railroads  illustrated  in  this 
chapter. 

The  chart  shows  a  variation  in  maintenance  from  39.1  cents  per  1,000  revenue 
ton  miles  on  the  Norfolk  &  Western  to  93.G  on  the  Denver  &  Rio  Grande,  a  differ- 
ence of  139  per  cent. 

This  is  not,  however,  a  satisfactory  basis  of  comparison  as  the  revenue  to  miles 
do  not  include  the  empty  car  mileage  or  the  transportation  of  Company  material 
and  the  omission  of  this  data  renders  the  information  quite  incomplete. 

For  instance :  in  1911  the  empty  car  miles  on  the  Union  Pacific  was  25  per  cent, 
of  the  total  car  mileage,  26  per  cent,  on  the  Atchison,  34  per  cent,  on  the  Pennsyl- 
vania R.  R.  and  35  per  cent,  on  the  Reading.  Empty  cars  in  service  are  subject  to 
the  wear  and  tear  of  traffic  and  depreciation  in  approximately  the  same  ratio  as 
cars  in  revenue  service. 


FREIGHT  CAR  MAIXTEXAXCE 


55 


rRmHT  mmc  omsin. 

100,000  Fevcnue  Ton-Hi les  Per  Hik  of  Track. 

1911. 


rf-KfiKgrtl 
B.grn 

rf.rccnT. 
c/a^orrtJ. 

CRIC 

/r/rm.  co. 
/^ccs-sri. 
is^ns 
rvc/f.  cjT/rr. 

C.C.C.ir3TL 

/in:  co/i5TL/rr£: 
/u  cr/rr 

fr/ISKCS^STL 
/703  if^O///0 
C.S^/f. 
C3.9^Q 

r/^f3co 
cn^sr/' 
o/Y/orY  f/ic. 

CV/CO.  tf-JOC/. 

5/irrrflr£5r3. 

ZOU.FAC.Srj. 


3p   32    34-     3£   38  4& 


/O     /2      /^     /6      /O    20    ZZ    ;f4    Jt6    ^S    30    JZ    34     S6    JS  -Hf 


Fio.  23 


50 


HAlLh'OAl)  OPEHATINU  COSTS 


Likewise,  cars  carrying  company  material  are  under  the  same  service  conditions 
as  thofcie  revenue  freight,  when  nuiintenance  is  considered.     Company  material  is 


Maixtexaxce  of  Fukiuht  Cars — Pkr  1,000  Revknue  Ton  Miles 

11)11 


Cents 

N.  Y.  N.  H.  &  H 71.7 

B.  &M 73.3 

N.Y  Central 83.8 

Penn.  R.  R 52.0 

D.  L.  &\V 45.7 

Leh.  A'alley 48.8 

D.  &  H...'. 48.4 

C.  R.  R.  of  N.  J 54.4 

P.  &  R 88.3 

49.1 

47.3 


Erie 

B.  &  O 

L.  E.  &  W 73.7 

P.  &L.  E 50.7 

Penna.  Co 5(5.3 

P.  C.  C.  &  St.  L 69.8 

L.  S.  &  M.  S 61.3 

Mich.  Central 71.4 

Pere  Marq 55.9 

C.  C.  C.  &  St.  L 67.7 

Vandalia 67.6 


Cents 

C.  &  0 46.3 

N.  &  W 39.1 

Atl.  Coast  Line 91.2 

Seab.  Air  Line ^ 70.6 

Southern ' 75.1 

111.    Central 74.7 

L.  &  N 65.9 

Nash.  C.  &  St.  L 90.4 

Mob.  &  Ohio 56.9 

C.  &  A 56.1 

C.  B.  &Q 67.5 

C.  R.  I.  &  P 70.3 

Frisco   74.8 

C.  M.  &  St.  P 68.1 

Union  Pac 46.4 

Colo.  &  Sou 74.7 

D.  &  R.  G 93.6 

Santa  Fe  Sys 59.0 

Sou.  Pac.  Sys 80.5 

Nor.   Pac 50.1 


an  extensive  tratfic  item.  During  the  fiscal  year  1910,  the  net  ton  miles  of  Company 
material  on  the  Southern  Pacific  was  equal  to  20  per  cent,  of  the  revenue  ton  miles, 
while  on  the  Atchison  it  was  32  per  cent.  Failure  to  consider  the  empty  car  mile- 
age or  the  mileage  made  in  non-revenue  service  in  making  comparisons  of  mainte- 
nance, will  result  in  erroneous  conclusions. 

To  permit  the  influence  of  these  two  items  on  the  total  miles  run  to  be  more 
thoroughly  appreciated,  the  following  data  covering  the  freight  car  density,  i.  e., 
10,000  freight  car  miles  per  mile  of  total  track,  is  shown  and  also  illustrated  in 
Fig.  25. 

The  variation  in  this  table  is  from  3.99  on  the  Denver  &  Rio  Grande  to  19.85 
on  the  Pittsburg  &  Lake  Erie.  A  comparison  of  Figures  23  and  25  is  very  interest- 
ing, particularly  the  Xew  York  Central  with  the  Delaware  &  Hudson,  the  Pennsyl- 
vania with  the  I^ackawanna,  the  Lehigh  Valley  with  the  Central  Railroad  of  New 
Jersey,  and  the  Santa  Fe  with  the  Northern  Pacific. 

The  maintenance  of  freight  cars,  as  has  been  previously  pointed  out  should  be 
proportional  to  the  distance  hauled  and  for  the  purpose  of  continuing  the  study, 


FHEHUIT  CAR  MAINTENANCE 


57 


Fer  /OOO  Re/ef7ue7dn/7//e6, 


/rr/r/fS'/f. 

BPn 

/yrcjT/rr. 

ly. 

/7/c/f.  ce/rr: 

C.CC.ScSU. 

y/i/ro/fi//i. 
/fT/L  co/i5ri/rr£ 

csr/f. 
(//f/o/r  /VIC. 

COlOi^SOl/. 
DJ'/i.O, 

j/f/fT/fff  srs. 
50/ mc.  ^r3. 

/fO/<  F/iC. 


40 


60 


90         /OO 


z. 


c£/rr^, '  o 


/o 


JtO 


m 


90 


/do 


Fig.  24 


58  RAILROAD  OPERATING  COSTS 

Freight  Car  Density.    10,000  Freight  Car  Miles — Per  Mile  of  Track 

1911 


N.  Y.  N.  H.«&H $  7.04 

B.  &M; 8.03 

N.  Y.  Central 14.35 

Penna.RR 18.47 

D.  L.  &  W 17.45 

Leh.  Valley 15.28 

D.  &H 13.02 

C.  R.  R.  of  N.  J 14.70 

P.  &  R 18.88 

Erie 14.00 

B.  &  0 13.98 

L.  E.  &  W 5.85 

P.  &L.  E 19.85 

Penna.  Co 17.38 

P.  C.  C.  &St.  L 14.85 

L.  S.  &M.  S 15.61 

Mich.  Central 11.93 

Pere  Marq 5.83 

C.  C.  C.  &  St.  L 12.19 

Vandalia 9.47 


C.  &  0 $  12.92 

N.&W :....  16.82 

Atl.  Coast  Line 4.70 

Seab.  Air  Line 4.63 

Southern 5.65 

111.   Central 10.16 

L.  &N 8.34 

Nash.  C.  &St.  L 7.11 

Mob.  &  Ohio 10.39 

C.  «&  A 9.73 

C.  B.&Q 6.29 

C.  R.  I&  P 5.81 

Frisco   5.06 

C.  M.  &  St.  P 6.50 

Union  Pac 7.52 

Colo.  &  Sou 4.23 

D.  &  R.  G 3.99 

SanteFeSys 6.77 

Sou.  Pac.  Sys 5.65 

Nor.   Pac 5.04 


the  following  data  is  submitted  and  illustrated  in  Fig.  26,  showing  the  mainte- 
nance cost  per  1,000  freight  car  miles  for  the  same  liiilroads. 

In  this  table,  the  extremes  are  the  Union  Pacific,  with  a  maintenance  cost  of 
$5.54  per  1,000  freight  car  miles  and  the  Reading  with  $13.47  per  1,000  car  miles,  a 
difference  of  143  per  cent. 

While  this  unit  is  not  sufficiently  comprehensive  to  include  all  influencing 
factors,  it  is  the  best  basis  for  comparing  these  maintenance  costs  that  is  now  avail- 
able. Comparisons  on  the  basis  of  miles  run  are  unsatisfactory  due  to  not  taking 
into  consideration  the  variation  in  the  weight  of  the  cars. 

If  the  gross  ton  miles  were  reported  by  the  railroads  to  the  Interstate  Commerce 
Commission  (which  information  would  reflect  the  total  weight  of  both  revenue 
and  company  material,  the  weight  of  cars  whether  loaded  or  empty  and  the  distance 
hauled),  this  unit,  i.  e.,  the  gross  ton  mile,  would  be  far  more  satisfactory  for  com- 
paring maintenance  costs  than  any  now  employed. 

Other  important  factors  entering  into  the  maintenance  of  freight  cars,  besides 
the  size  and  loading  of  the  cars  and  the  miles  run,  are  the  design  and  material  in 
construction,  the  age  of  the  equipment  and  class  of  traffic  handled. 

Many  railroads  have  the  majority  of  their  cars  of  all  steel  construction,  while 
others  prefer  to  have  steel  underframes  with  wooden  bodies.  Other  railroads,  in 
order  to  have  this  portion  of  their  rolling  stock  able  to  withstand  the  stress  of  heavy 
tonnage,  equip  their  wooden  cars  with  steel  re-inforcements,  which  with  the  addi- 
tion of  cars  of  all  wooden  construction  gives  four  distinct  types  of  cars.     It  is 


FREIGHT  CAR  MAINTENANCE 


59 


miGtiTmo^nsin 

10,000  rreighf  Car  H/ks  Per  /IHe  of  Track. 

I9IL 


0      /     Z     3      ^     S     e     7     3     9      /O   //    /Z    /3     ^    /5   /6  /7     /3   G  J?^ 


/rrcr/rr. 

IV 

/r/y/M.co. 

ccc^su. 

/in  co/fsri//y£. 

5amft/f/if 
/a  ce/rr. 

LS-// 

/r/fs/f.c.^j/'/. 

/70SJ^0///0. 

(//w/rfVic 

3/iryT/r  r/^  jrs 
no/f./'/ic. 


60  RAILROAD  OPERATING  COSTS 

Maintenance  of  Freicht  Cars — Per  1,000  Freight  Car  Miles 

1911 


X.  Y.  X.  H.  &  H $  7.31 

B.  &M 7.66 

X.  Y.  Central 0.35 

Penna.  R.  R 8.84 

D.  L.  &  W 6.68 

Leh.  Valley 7.34 

D.  &H 7.75 

C.  R.  R.  of  X.  J 8.82 

P.  &  R 13.47 

Erie 7.03 

B.  &  O 6.89 

L.  E.  &  W 9.28 

P.&L.E 10.33 

Penna  Co 9.19 

P.  C.  C.  &St.  1 9.08 


L.  S.  &M.  S, 


8.49 


Mich.   Central 7.79 

Pere  Manj 7.02 

C.  C.  C.  &  St.  L 8.55 

Vandalia 9.14 


C.  &  0 $  8.47 

X.  &  W 6.71 

Atl  Coast  Line 7.63 

Seab.  Air  Line 6.70 

Southern 7.46 

111.   Central 9.25 

L.  &X 8.46 

Xash.  C.  &  St.  L 8.83 

Mob.  &  Ohio 6.60 

C.  &  A 7.25 

C.  B.  &Q 7.90 

C.  R.  L&P 7.09 

Frisco   8.1 1 

C.  M.  &  St.  P 7.05 

Union   Pacitic 5.54 

Colo.  &  Sou 11.28 

D.  &  R.  G 12.31 

Santa  Fe  Sys 6.07 

Sou.  Pac.  Sys 9.47 

Xor.   Pac 6.95 


evident  that  the  type  of  cars  used  on  the  various  railroads  will  have  important  bear- 
ing on  the  maintenance  costs. 

The  extent  to  which  the  standardization  of  equipment  has  been  carried  must 
also  be  considered,  as  those  railroads  having  equipment  with  standard  parts  will  be 
able  to  maintain  their  cars  at  considerable  less  cost  for  material  than  those  whose 
equipment  is  not  standardized.  Since  material  constitutes  approximately  70  per 
cent,  of  the  total  freight  car  maintenance,  this  item  is  a  most  important  one. 

Unfortunately,  the  Interstate  Commerce  Commission  records  do  not  provide 
for  anv  segregation  of  maintenance  costs  between  labor  and  material,  although 
this  information  is  necessary  in  order  to  make  a  complete  study. 

The  topography  of  the  country  also  has  a  substantial  influence  on  the  mainte- 
nance of  cars,  since  the  service  conditions  are  far  more  severe  on  cars  when  handled 
over  mountain  grades  than  in  a  level  country.  In  making  any  analysis  between 
two  railroads,  the  question  of  grades  must  be  given  consideration. 

By  far  the  most  important  item  affecting  freight  car  maintenance,  and  one 
which  heretofore  has  not  been  considered  is  the  influence  of  the  interchange  of  cars. 

In  order  to  facilitate  the  handling  of  traffic,  the  leading  railroads  have  stand- 
ard rules  of  interchange  of  cars  which  practice  permits  much  of  the  freight  car 
mileage  on  any  railroad  to  be  made  by  foreign  cars. 

This  is  a  particularly  large  item  with  roads  having  traffic  connections  like  the 
Union  Pacific,  Lehigh  Valley,  Vandalia  and  P.  C.  C.  &  St.  L    In  1910,  the  foreign 


FREIGHT  CAR  MAIXTEXANCE 

fer/OOO  Freight  Car/liles. 

m 


61 


/rrcc/rr 

ly. 
CKR.  ornj. 

BJtO. 

n/c/icr/rr 

CCCJtSTL 
CJt'O 

/U.  C^TAfT 

1.3: rf. 
CJt/J. 

c.B3^a. 
mmPAC. 

COlOJ^SOl/. 

5mT/i  re.srs 
50U  z^/ic  5rs. 
/Yo/r  mc. 

OOiL/{HSrO 


/3      /^ 


/f 


Fig.  26 


62 


RAILROAD  0PP:RAT1NG  COSTS 


car  mileage  on  the  Union  Pacific  was  approximately  81  per  cent,  of  the  total  car 
mileage. 

In  connection  witli  the  interchange  of  cars  there  is  an  agreement  between  the  rail- 
roads as  to  what  repairs  the  owner  shall  be  responsible  for,  while  their  cars  are  on 
foreign  lines,  the  balance  of  the  repairs  being  borne  by  the  railroad  directing  their 
movement. 

Where  the  interchange  of  traffic  is  sutlieient  to  make  the  foreign  car  mileage 
an  important  item  on  any  railroad,  it  is  evident  the  method  employed  in  making 
repairs  to  foreign  cars  and  the  billing  for  this  service  must  necessarily  influence  the 
total  freight  car  maintenance.  In  the  records  of  the  Interstate  Commerce  Commis- 
sion, this  data  is  not  on  file  and  as  a  consequence  nothing  can  be  done  in  continuing 
a  study  in  this  respect. 

In  conjunction  with  the  rules  governing  the  interchange  of  cars  and  repairs, 
there  is  also  an  agreement  that  the  railroad  handling  a  foreign  car  shall  pay  the 
owner  a  service  rental  for  each  day  the  car  is  on  that  particular  road.  On  a  road 
like  the  Union  Pacific  with  over  80  per  cent,  of  the  total  car  mileage  made  by 
foreign  cars,  the  per  diem  rental  is  of  considerable  importance  in  the  cost  of  freight 
operation. 

It  also  follows  that  a  road  so  situated,  that  it  can  control  a  large  amount  of 
interchange,  will  find  it  unnecessary  to  own  a  great  number  of  cars,  while  railroads 
doing  largely  a  local  business  must  necessarily  carry  a  heavy  equipment  investment. 

In  order  that  such  a  study  can  be  conducted  satisfactorily,  it  will  be  necessary 
to  know  the  total  amounts  paid  by  a  railroad  for  foreign  car  service  and  also  the 
total  mileage  made  by  these  cars. 

Another  item  which  influences  the  number  of  cars  owned  in  addition  to  the 
effect  of  interchange  of  traffic,  is  the  extent  to  which  the  cars  are  out  of  service. 
Gravity  yards,  which  facilitate  the  handling  of  traffic,  greatly  increase  the  number 
of  cars  to  be  repaired.  The  same  conditions  exist  in  hauling  cars  over  heavy  moun- 
tain grades. 

To  make  a  thorough  analysis,  it  will  be  necessary  to  know  the  number  of  cars 
held  for  repairs  each  day  or  the  average  time  the  cars  are  out  of  service  for  such 
repairs. 

A  careful  study  of  the  voluminous  data  and  illustrative  charts  submitted  in 
connection  with  this  treatise  on  freight  car  maintenance,  results  in  the  full  reali- 
zation that  the  present  data  is  entirely  insufficient  to  permit  a  conclusive  study  of 
this,  the  largest  item  of  maintenance  of  equipment  expenditures. 

There  is  at  present  no  satisfactory  unit  to  be  used  with  the  available  data  that 
will  afford  opportunity  for  the  analyst  to  make  such  deductions  as  will  be  of  value. 

Xo  suggestions,  therefore,  can  be  made  at  this  time  for  the  purpose  of  assist- 
ing railroad  operating  officials  in  determining  the  best  design  and  type  of  con- 
struction, the  best  methods  of  operation  and  the  best  practices  in  maintenance  to 
attain  the  highest  efficiency  in  this  particular  part  of  railroad  operation. 

It  is  hoped,  however,  that  the  suggestions  contained  herein  will  be  reviewed 
with  approval  by  the  Interstate  Commerce  Commission  and  that  such  data  will  be 
secured  as  will  make  future  studies  of  freight  car  maintenance,  educative  and  in- 
structive. 


Locomotive    Maintenance 


CHAPTER  V. 


The  maintenance  of  locomotives,  exclusive  of  depreciation  charges  on  all  the 
railroads  in  the  United  States  in  191 1,  was  equivalent  to  8.0  per  cent,  of  the  total 
operating  expenses.  This  percentage  of  operating  expenses  in  that  year  ranged 
from  5.8  per  cent,  on  the  Northern  Pacific  to  11.5  per  cent,  on  the  D.  &  R.  G., 
and  on  seven  railroads  this  item  constituted  more  than  10  per  cent,  of  the  total 
operating  expenses. 

Inasmuch  as  35  per  cent,  of  the  total  maintenance  of  equipment  expenses  are 
charged  to  repairs  and  renewals  of  locomotives,  these  costs  should  be  studied  very 
carefully  before  any  conclusions  are  drawn  with  reference  to  the  efficiency  of 
performance. 

The  usual  method  of  comparing  locomotive  maintenance  costs  is  on  the  basis 
of  the  annual  expenditure  per  locomotive,  this  form  being  used  in  practically  all 
of  the  annual  reports  of  railroad  presidents  and  all  analyses  of  operating  expenses. 

In  a  preceding  chapter,  figures  w^ere  given  showing  an  average  increase  of 
33  per  cent,  in  the  tractive  force  of  locomotives  in  the  9  years  ending  1910.  In 
the  year  1911,  the  average  tractive  force  per  locomotive  varied  from  20,564  pounds 
on  the  Atlantic  Coast  Line  to  33,830  pounds  on  the  Chicago,  Milwaukee  &  Puget 
Sound — a  difference  of  74  per  cent. 

Larger  and  heavier  locomotives  are  bound  to  require  higher  maintenance  ex- 
penses than  those  of  smaller  size,  and  with  such  a  variation  in  the  average  weight 
of  locomotives,  it  is  evident  that  the  employment  of  "the  locomotive"  as  a  com- 
parative unit  is  far  from  satisfactory. 

That  comparisons  of  this  nature  are  erroneous  is  emphasized  by  the  record  of 
locomotive  maintenance  on  the  Atchison,  where  the  cost  per  locomotive  was  48 
per  cent,  higher  in  1910  than  in  1901.  which  would  indicate,  if  the  locomotive 
is  the  proper  unit,  that  repairs  had  increased  at  an  enormous  and  extravagant 
rate.  In  the  meantime,  however,  the  average  weight  increased  37  per  cent. ;  the 
average  tractive  force  increased  41  per  cent.;  and  the  maintenance  cost  per  ton  of 
tractive  force  decreased  4  per  cent. 

Another  factor  which  would  tend  to  destroy  the  value  of  the  locomotive  as  the 
comparative  unit  is  the  fact  that  the  average  miles  run  by  locomotives  may  vary 
considerably  on  different  railroads.  In  1911,  for  example,  the  average  miles  "per 
locomotive  owned"  on  the  Erie  was  21,856  miles,  while  the  average  on  the  P.  C.  C. 
&  St.  L.  was  37,272 — a  difference  of  70  per  cent.  If  comparisons  of  maintenance 
costs  are  to  be  made  on  the  basis  of  the  average  cost  "per  locomotive,"  it  is  apparent 
that  the  railroad  with  the  smallest  locomotives  and  running  the  least  number  of 

63 


64 


RAILROAD  OPERATING  COSTS 


miles  will  possess  considerable  advantage.  Such  figures  are  of  no  value  whatever 
for  comparative  purposes. 

On  some  railroads  an  effort  is  made  to  carry  this  comparison  to  a  more  satis- 
factory conclusion,  and  comparisons  are  made  on  the  basis  of  "per  locomotive  mile." 
However,  these  comparisons  are  but  little  more  satisfactory  than  on  the  basis  "per 
locomotive"  since  the  size  of  the  locomotive  is  not  considered,  and  with  a  variation 
of  74  per  cent,  in  average  weight  the  relative  size  exerts  considerable  influence. 

The  gross  ton  mile  is  the  most  satisfactory  unit,  since  this  combines  the  total 
tonnage  and  the  distance  hauled,  but  this  data  is  not  available  since  railroads  do 
not  report  this  to  the  Interstate  Commerce  Commission.  Any  comparisons,  how- 
ever, must  take  into  consideration  operating  conditions,  particularly  grades  and 
speed  of  trains  in  making  a  final  analysis. 

A  unit  should  be  used  which  takes  into  consideration  the  power  developed 
and  the  work  delivered  by  the  locomotive.  The  engine  which  propels  the  steam- 
ship is  rated  in  horse-power  and  the  performance  is  calculated  in  horse-power 
hours.  Electric  power  units  are  similarly  rated  in  Wattes  and  the  work  performed 
is  given  in  watt-hours. 

Maintenance  costs  on  electric  equipment  are  not  calculated  as  so  much  j)er 
dynamo  or  motor,  but  based  on  the  work  done — the  watt-hours.  It  is  therefore 
decidedly  reasonable  to  expect  to  show  locomotive  costs  on  a  similar  basis.  Trac- 
'tive  force  or  draw-bar  pull  is  the  usual  term  to  express  the  power  of  a  locomotive, 
and  a  satisfactory  work  unit  (which  may  be  called  the  tractive  mile)  is  the  product 
of  the  tractive  force  and  mileage  made. 

To  illustrate  the  value  of  the  tractive  mile  or  work  unit  as  a  basis  of  com- 
parison of  maintenance  costs,  the  following  study  is  made  covering  a  period  of 
years  on  a  number  of  representative  railroads.  This  information  was  compiled 
by  the  Interstate  Commerce  Commission  at  the  recent  rate  hearing.  Charts  and 
also  the  actual  figures  are  presented  giving  exhibits  of  six  representative  eastern 
and  six  western  railroads,  showing  locomotive  maintenance  costs. 

Repairs  and  Renewals  of  TjOcomotives  peu  Locomotive. 

Average  4  Yrs,  Average  5  Yrs.  Per  Cent. 

Eastern  Roads  Ending  1905  Ending  1910  Increase 

N.  Y.  Central $2450  $2,430  13 . 0% 

Penn.   Railroad 2,340  2,640  12.8 

D.  L.  &  W 1,480  1,690  14.2 

B.  &  0 2,370  2,440                       3.0 

Wabash  R.  R 2,530  2,580                      2.0 

T^high   Valley 2,670  2,690                       1.0 

Western  Roads 

C.  M.  &  St.  P $1,365  $2,150  57.5% 

C.  R.  L&P 1,840  2,330  26.6 

C.  «&  N.  W 1,660  2,010  21.1 

C.  B.  &  Q 2,320  2,620  13.0 

C.  &  A 2,300  2,595  12.8 

A.  T.  &S.  F 2,600  2,720  4.6 


LOCOMOTIVE  MAINTENANCE 


65 


The  average  cost  of  repairs  and  renewals  of  locomotives  ^*'per  locomotive"  for 
five  years  ending  1910,  compared  with  four  years  ending  1905,  is  presented  in 
Fig.  27. 

REP4IR5  AND RENEmLS  OF LOCOMOWES 

p^R  Locomr/VE 

Avcmqc  of S /ears  Ending  1910  Compared  tfith  3 /e(^^dmf/9fi5' 


PENN.RR, 
OLesW 

tV ABASH 
UV 

CM.ef5tR 
CR.i€^P 

C  B.€^CL 
C^A. 


ROADS 


3P 


S» 


WEST£RK  ROADS 


ATM^S^r 


%//K^OS€         iO 


ZO  30 

Fig.  27 


^O 


^o 


&0 


11. 


\ 


66 


RAILROAD  OPERATING  COSTS 


l!,l 


:1' 


Average  4  Yrs. 

Average  5  Yrs. 

Per  Cent 

Ending  1905 

Ending  1910 

Increase 

5.G5  cents 

7 .  81  cents 

38.2% 

4.24 

5.49 

29.5 

7.72 

9.78 

26.7 

6.23 

7.65 

22.8 

6.98 

7.67 

10.0 

10.37 

10.80 

4.2 

3.46  cents 

5.36  cents 

55.0% 

6.20 

8.22 

32.6 

6.78 

9.07 

33.6 

4.34 

5.68 

31.0 

6.28 

7.76 

23.6 

9.73 

10.19 

4.7 

The  increases  on  the  eastern  railroads  range  from  1.0  per  cent,  on  the  Lehigh 
Valley  to  13  per  cent,  on  the  New  York  Central.  On  the  western  roads  the  increases 
range  from  4.6  per  cent,  on  the  Atchison  to  57.5  per  cent,  on  the  St.  Paul. 

Fig.  28  illustrates  the  increase  in  repairs  and  renewals  of  locomotives  "per 
locomotive  mile"  during  the  ahove-mentioned  period. 

Repairs  and  Renewals  of  Locomotives  per  Locomotive  Mile. 

Eastern  Roads 

N.  Y.  Central 

D.  L.  &  W 

Penna.  Railroad 

Wabash    

B.  &  0 

Lehigh  Valley 10 .  37 

Western  Roads 

C.  M.  &St.  P 

C.  RL&P 

C.  B.  &  Q 

C.  &  N.  W 

C.  &  A 

A.  T.  &  S.  F 

The  New  York  Central  shows  an  increase  of  38  per  cent,  and  the  St.  Paul 
an  increase  of  55  per  cent.,  while  the  Lehigh  Valley  and  the  Atchison  increased  less 
than  5  per  cent. 

The  costs  when  calculated  on  the  basis  of  tractive  force  (a  more  satisfactory 
unit  than  the  other  two  just  used),  averaged  for  five  years  ending  1910,  are  shown 
in  Fig.  29. 

Repairs  and  Renewals  of  IjOcomotives  per  Ton  Tractive  Force. 

Average  4  Yrs. 
Eastern  Roads        Ending  1905 

D.  L.  &  W $121.00 

Penna.  Railroad 181.00 

N.  Y.  Central 191.00 

B.  &  0 182.00 

Lehigh   Valley 241.00 

Wabash  280.00 

Western  Roads 

C.  M.  &St.  P $172.00 

C.  R.  L  &  P 180.00 

C.  &  N.  W 189.00 

C.  &  A 198.00 

C.  B.  &  Q 246.00 

A.  T.  &  S.  F. 219.00 


Average  6  Yrs. 

Per  Cent. 

Per  Cent. 

Ending  1910 

Increase 

Decrease 

$133.00 

10.0% 

•    •   •    • 

169.00 

6.6% 

170.00 

11.0 

158.00 

13.2 

200.00 

17.0 

228.00 

18.5 

$217.00 

26.2% 

•   •   •  • 

185.00 

2.8 

•   •  •  • 

191.00 

1.0 

•    ■   •   • 

186.00 

•  •  •   • 

6.1% 

223.00 

•   •   •   • 

9.3 

182.00 

•  •   •   • 

16.9 

LOCOMOTIVE  MAINTENANCE 


67 


^r/^//?j  /9/yz7  /?f//fmij  or LoconoTiyts  per 

locomr/zf  h/le. 

Average  cff  6  Years  Ending  1910  CoimareJ iv/fh 

S  y^ara  Ending  I90S. 


lffCRC:/{6£  Jo. 


t9 


rfrcEfiT 

OlJffV. 

mmH 

BdiO. 
LV 


40 


SO 


IVEdTERfl  ROADS. 


cmSTF. 
CMS-P 

cas-a. 

C.&/f.llY. 


60 


At 


10  ja 

Fia.  28 


iV 


A 


60 


68 


RAILROAD  OPERATING  COSTS 


REP/I IR5  Am  RE/rmMS  Of  LOCOnOTIVE^ 

PER  ron  TRACT/ yf  ro/^CE. 

5  rears  Ending  /9/0. 


memH. 
nrcE/iT 

BSfO. 


CnJhSTP. 

CRIJ^R 
CJhA. 


so         too         /so 
EftST£Riy  R0/iD2 


lYESTERft  R0A05 


SO  /oo 

Fig.  29 


J60 


200 


250 


zoo 


2SO 


LOCOMOTIVE  MAINTENANCE 


69 


REPAIRS  AHD  REI1EWAL6  OF  LOCOPOT/VES 
PER  TOn  TRACT/yE  TORCE. 

Average  of  6  Y^ars  Ending  /9/0  Compared 
tuiih  4'  )^ars  tndmg  /905. 

I 


%DECRf/f3£. 

20         /S        X>         3 


/rrcE/rr 

B.»0. 

LV. 

IV/IBfl3H 


cnssTP 
csirnw 

C.d'A. 

CBS  a. 


AIJhSE 


%/ncReflSE. 

o        s       n       1$ 

E/UrER/TRO/IDS. 


WE5TERI1  ROADS. 


%  ZO  /S         fO 


5       e 

Fio.  30 


20        2f 


/O 


rs      ZO      2S 


70 


RAILROAD  OPERATING  COSTS 


A  comparison  of  the  performance  by  periods  (Fiof.  30)  for  the  eastern  roads 
point  out  the  fact  that  while  the  Wabash  and  Lehigh  Valley  spent  the  most  money 
per  ton  of  tractive  force,  they  made  a  decrease  of  more  than  15  per  cent,  during 
the  five  years  ending  1910  over  the  four  years  ending  1905. 

The  Lackawanna,  on  the  other  hand,  while  showing  the  least  expenditure  per 
ton  of  tractive  force,  actually  increased  their  costs  in  the  five-year  period  ending 
1910  over  the  previous  four  years.  The  western  roads  show  a  more  nearly  equal 
expenditure,  but  a  wider  variation  in  comparing  the  two  periods.  The  St.  Paul 
shows  an  increase  of  26.2  per  cent,  in  the  five-year  period  ending  1910  over  the 
four-year  period  ending  1905;  the  Atchison  shows  a  decrease  of  16.9  per  cent, 
between  the  same  periods. 

Repairs  and  Renewals  of  TjOComotives  per  Work  Unit  (Tractive  Mile). 

Average  4  Yrs.      Average  5  Yrs.         Per  Cent.  Per  Cent. 

Eastern  Roads  Ending  1905  Ending  1910  Increase  Decrease 

D.  L.  &  W $1.75  $2.18  24.6% 

N.  Y.  Central 2.52  2.74                 8.7  

Penna.   Railroad 3.03  3.14                 3.6  

Wabash 3.48  3.38  2.9% 

B.  &  0 2.71  2.48  ....  8.5 

Lehigh  Valley 4.70  4.02  14.5 

Western  Roads 

C.  M.  &  St.  P $2.20  $2.71  23.2% 

C.  B.  &  Q 3.72  4.25  14.2 

C.&N.W 2.48  2.69  8.5 

C.  &  A 2.73  2.80  2.6 

C.  R.  I  &  P 3.36  3.26  3.0 

A.  T.  &S.  F 4.21  3.39  ....  19.5 

The  locomotive  maintenance  costs  computed  on  the  "tractive  mile"  or  "work 
unit"  basis  (Fig.  31)  show  that  the  Lehigh  Valley  costs  are  higher  but  that  they 
have  decreased  their  costs  14.5  per  cent.  (Fig.  32).  The  Lackawanna  is  just  the 
reverse  in  that  their  costs  are  the  lowest  per  "work  unit"  or  "tractive  mile,"  but 
there  is  an  increase  of  24.6  per  cent,  during  the  i)ast  five  years  as  compared  with 
the  four-year  period  ending  1905.  On  the  western  roads  there  is  not  the  variation 
noted  on  the  eastern  roads  in  actual  costs.  However,  in  comparing  the  two  periods, 
the  extremes  are  the  St.  Paul,  with  an  increase  of  23.2  per  cent.,  and  the  Atchison, 
with  a  decrease  of  19.5  per  cent. 

The  study  of  the  twelve  railroads  just  presented  serves  to  establish  the  "tractive 
mile"  or  "work  unit"  as  a  much  more  satisfactory  comparative  basis  than  any  used 
heretofore. 

In  order  to  permit  the  readers  to  more  thoroughly  appreciate  the  situation, 
and  to  realize  the  necessity  for  a  complete  revision  of  existing  units  of  comparison 
of  maintenance  costs,  the  following  data  for  the  years  1908,  1909,  1910  and  1911 
is  presented  for  many  of  the  representative  railroads,  viz. : 

Maintenance  of  locomotives,  "per  locomotive" Figs.  33  and  34 

Average  tractive  force  of  locomotives Figs.  35  and  36 


LOCOMOTIVE  MAINTENANCE 


n 


REP/IIRS  AMD  RENEWALS  OF  L0C0M0W55 

PER  V\/OR\<  UNIT 
Average  ofSYzarj  Encfmq  1^10 


i  ^O         /.OO       /.60        ZOO        ZSO       SCO 


LY 

WABASH 
PENN  RR 
NYCENT 

a&o. 

ATe^5fr 
CRje^P 

Ce^A 
CMe^3iR 


Wi'STfPN  ROADS 


3S0 


<V 


^  .SO        fOO      /.iO        zoo      Z^        3.00      350      A.OO 

Fio.  31 


72 


KAILROAD  OPERATING  COSTS 


R^miR^  /im /^cntwflu  or LXomT//fs 

ffR  woRH  urriT. 

Average  of  S  y^ars  £nc/ing  /9/0  Compare  <f 


» 


BJhO. 
LV. 


CBM. 

c.miY. 

CJl-A. 


XOCCRC/IX.      I 

/S       10         S         0 

eflsrayi  R(j)iDS. 


S        to        15 


20 


IS 


ivesTCRrf /iOfiDS. 


ZO         /S         fO         s  o 

Fig.  32 


n      ts     10      is 


>4 


LOCOMOTIVE  MAINTENANCE 

Average  miles  "per  locomotive" Figs.  37  and  38 

Maintenance  of  locomotives,  "per  locomotive  mile" Figs-  39  and  40 

Maintenance  of  locomotives,  "per  tractive  mile" Figs.  41  and  42 

Maintenance  of  Locomotives — Per  Locomotive. 

1908 

N.  y.  Central $2,394 

Erie   3,520 

N.  Y.  N.  H.  &  H 1,874 

Penn.  R.  R 2,758 

D.  &  H 2,033 

D.  L.  &  W 1.962 

C.  R.  R.  of  N.  J 2,2G4 

Lehigh  Valley 2,649 

Phil.  &  Read 2,700 

C.  &  0 2,024 

Atl.  Coast  Line 1,597 

Seab.  Air  Line 2,348 

Southern   1,907 

Lou.  &  Nash 3,258 

Mob.  &  Ohio 1,458 

Nash.  C.  &St.  L 2,199 

P.  &  L.  E 1,410 

L.  E.  &  W 3,155 


1908 

P.  C.  C.  &  St.  L $2,595 

Vandalia   2,326 

C.  C.  C.  &  St.  L 2,222 

Pere   Marq 1,790 

Mich.   Central 2,007 

Wabash    2,750 

111.  Cent 2,435 

C.  &  N.  W 1,795 

C.  B.  &  Q 2,025 

C.  M.  &  St.  P 1,955 

Union  Pacific •• . . .  3,318 

Mo.  Pac 1,908 

M.  K.  &  T 2,238 

Frisco  2,025 

Texas  &  Pac 2,059 

Colo.  &  Sou 2,402 

D.  &R.  G 2,376 

Sou.  Pac.  Sys 3,090 

Great  Nor 2,075 


73 


1909 

1910 

1911 

$2,110 

$2,346 

$2,559 

2,678 

2,246 

2,210 

1,540 

1,811 

2,107 

2,497 

2,777 

2,865 

2,147 

2,996 

3,283 

1,636 

1,762 

2,064 

2,203 

2,270 

2,254 

2,304 

2,250 

2,212 

2,357 

2,744 

2,788 

2,277 

2,464 

2,499 

1,365 

1,778      ' 

1,970 

2.110 

2,252 

2,551 

1,770 

2,311 

2,338 

2,810 

2,968 

3,228 

1,758 

2,042 

2,440 

2.121 

2,340 

2,444 

1.506 

1,655 

2,087 

3,045 

2,889 

3,231 

'Es — Per 

Locomotive. 

1909 

1910 

1911 

$2,570 

$2,958 

$3,256 

2,228 

2,789 

2,885 

2,319 

2,797 

2,750 

1,832 

1,780 

2,322 

2,283 

2,234 

2,344 

2,460 

2,814 

3,197 

2,670 

3,087 

3,175 

1,930 

2,301 

2,263 

2,103 

2,364 

2,164 

2,000 

2,361 

2,627 

3,240 

3,687 

3,604 

2,870 

^,766 

3,966 

2,682 

2,679 

2,633 

2,390 

2,902 

2,448 

2,254 

2,336 

3,165 

2,658 

2,870 

2,321 

3,313 

3,156 

3,151 

3,283 

3,702 

3.499 

1,<  YO 

2,230 

2,280 

RAILROAD  OPERATING  COSTS 

mimmna  onoconowa 

Fer  Locomot/ve. 

DOLLARS -0      Z50      500    7JO    /OOO  /Z50    1500   1750  ZOOO  2250  Z500  Z7fO  3000  3Z50  3500  5750 


/IXC^rfTRRL. 


i9oa 

t909 
/OlO 
191   I 


/T/?/C 


/9oe 

I9IO 

I9t   I 


nrrtHM. 


191 1 


Fm/iA.m 


DJ/f. 


i9oa 
/atf 


1900 
I909 
1910 
191 1 


DIM. 


I9ea 

I9C9 
1910 

191  I 


CR/^.or/y.j. 


/9oe 

/909 
/OlO 
19  1 1 


imo/f  min 


>9oe 

f9ai 

IBtO 

/at  I 


miAMm? 


I9C» 
/909 
l»l  O 
191/ 


CJO 


/ao» 

/9»» 

/»/o 
/a/  / 


m.  C0A5TU. 


/»om 

/909 

/»!  O 
/9  1 1 


5^ABA/RLI. 


/900 
/»09 

/»/o 


50^r///^/^/if 


/9oe 

'909 
/9/0 


jcoajir//J5//. 


/OOO 
/009 
/9/0 


/*703J^0///0 


/9oa 

rao» 

/9/» 
/9II 


m5//cj^sz/. 


/B09 
/999 
/O/O 
/»ll 


/'^/.yf 


/9oa 

/909 
/9/0 

/on 


i.cj^y. 


/9oa 

f9/0 
/»// 


dollarsr  o    z50     500    150  mxfo  /zso  /50c    1750  zooo  zzso  z500  ^750  30oo  3zso  jsoo  j7j0 

Fig.  33 


LOCOMOTIVE  MAINTENANCE 


76 


miriTmna  of  Loco/romj^s, 

Per  L  ocomot/Ve. 


DOU.fiRS.-0     ZSO      500    T50     WOO    IZ50   /500   1750   ZOOO  Z250  Z500  Z750  3O0(?  5Z50  3SOO  3750  4000 


PC.C.&5U. 


/AHD/iHA. 


CC.C.^511 . 


/r/^jrmm. 


/y/c/f.c^/yr. 


MA^ASM 


/a.c£:rfr. 


CMh^. 


cem 


Cr7JSTP 


a/rmP/9c 


A70.F//C. 


/7AJIT 


rR/5C0 


raJ^F/ic 


com^so^. 


MR.d 


/909 
l9lO 
1911 


i9oe 

/909 
/9IO 


/9oa 

/909 

t9ia 

/9I I 


i9oe 

/909 
/9IO 
/9I  I 


190  a 

/909 

nio 

191 1 


1900 
/909 
/9/0 
191/ 


/9CS 
/9C9 
/9IO 
/9/I 


/90S 

/f'O 
/9I I 


/9oe 

I90f> 
19/0 
191/ 


r9oe 

/909 
/9/0 
/9// 


/900 
/909 
/9lO 
/9/I 


/9oe 
/sea 

/O/O 
/9/  / 


/9oa 

/909 
/9/0 
/9/I 


i9oa 

/909 
/9IO 
/9/  I 


/9oa 

/909 
/9/0 
/9// 


/soa 
/ao9 
rmio 

/9I I 


/9ea 

/»09 

1910 
/9i  I 


50{/./yicjrj. 


/9oa 

/909 
/9/0 
/9  I  I 


ti/^T/YOP 


/9oa 

I909 
/9/0 
191  I 


± 


DMIAR5.  -  O       ZSa      500     750     fOOO  /ZSO    XS*?  ^750  ^a70  ZZSO  2SOO  ZTSO^OW  3ZS0  5SOOS7S040OO 


Fig.  34 


76 


BATLROAD  OPERATING  COSTS 


Average  Tractive  Force  of  Locomotives — (Pounds), 


1009 


1910 


1908 

N.  Y.  Central 29,188 

Erie   27,845 

N.  Y.  N.  H.  &  H 22,643 

Penn.  R.  R 31,401 

D.  &  H 30,441 

D.  L.  &  W 25,739 

C/R.  R.  of  N.  J 24,440 

Lehigh  Valley 26,992 

Phil.  &  Read 26,557 

Ches.  &  Ohio 31,356 

At.  Coast  Line 20,202 

Seab.  Air  Line 24,491 

Southern   28,599 

Tx)ii.  &  Nash 26,404 

Mob.  &  Ohio 26,288 

Nash.  C.  &  St.  L 23,247 

P.  &  L.  E 32,627 

L.  E.  &  W 24,904 


Average  Tractive  Force  of  IjOcomotives — (Potxds), 


11)08 

P.  C.  C.  &St.  L 27,666 

Vandalia    23,541 

C.  C.  C.  &  St.  T 28,088 

Pere    Marq 22,483 

Mich.   Central 23,924 

Wabash    23,560 

111.   Central 24,487 

C.  &N.  W 21,193 

C.  B.  &  Q 25,243 

C.  M.  &  St.  P 20,510 

Union    Pac 30,070 

Mo.  Pac 27,941 

M.  K.  &  T 24,256 

Frisco 24,501 

Tex.  &  Pac 20,496 

Colo.  &  Sou 28,057 

D.  &R.  G 28,103 

Sou.  Pac.  Sys 27,766 

Great  Nor 29,779 


1009 


1910 


1911 


30,344 

30,523 

31,554 

27,964 

28,687 

28,893 

22,714 

22,777 

22,856 

31,887 

32,073 

32,509 

30,874 

32,503 

33,068 

26,035 

26,877 

27,571 

24,836 

24,836 

25,187 

27,151 

27,752 

28.091 

26,568 

26,734 

27,872 

32,095 

32,771 

32,266 

20,235 

20,322 

20,564 

24,901 

25,214 

25,916 

29,049 

29,665 

30,357 

26,563 

27,220 

28,092 

26,289 

26,387 

25,909 

23,349 

24,561 

24,376 

33,452 

35,163 

35,761 

24,194 

24,194 

24,652 

1911 


27,704 

28,140 

28,315 

23,641 

24,432 

24,605 

29,251 

30,577 

31,905 

22,726 

23,578 

24,398 

24,425 

26,568 

28,340 

23,691 

23,785 

24,692 

24,492 

24,801 

25,263 

21,667 

22,612 

24,712 

24,648 

24,236 

26,608 

20,488 

21,418 

22,415 

30,041 

30,585 

30,773 

29,808 

28,022 

29,173 

24,519 

24,518 

26,130 

25,009 

25,709 

27,067 

20,496 

20,496 

20,515 

28.368 

28,352 

29,335 

27,311 

26,228 

27,865 

26,719 

27,809 

28,411 

29,778 

32,742 

33,333 

LOCOMOTIVE  MAINTENANCE 


77 


A/rn^f  mcrm  ma  onocomf/fs. 

20         Z^         ^8         ^        ^^         ^^ 


looo  pounos.-o 


IZ  /6 


MOO  /*oufros.-  o 


T8 


RAILROAD  OPERATING  COSTS 

MRME  TRACWE  FORCE  OF  L0C0mWt3. 


/ooo  pounos.  -  o 


/z         /i        zo        z-*        ee        'Sz        js 


4^0 


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19  I  I 


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1909 
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1911 


m^A5/f. 


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ni  I 


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/90» 
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c^//// 


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19  I  I 


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1911 


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5oap/ic 


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191  i 


LOCOMOTIVE  MAINTENANCE 


Miles  Per  Total  Locomotive. 

1908  1909 

N.  Y.  Central 30,427  28,300 

Erie   20,637  20,385 

N.  Y.  N.  H.  &  H 25,206  24,200 

Penn.  R.  R 26,715  24,429 

D.  &  H 31,008  27,553 

D.  L.  &  W 30,617  26,336 

C.  R.  R.  of  N.  J 26,794  24,194 

Lehigh  Valley 24,392  22,786 

Phil.  &  Read 24,662  23,354 

Ches.    &   Ohio 25,427  25,128 

At.  Coast  Line 28,972  27,792 

Seab.  Air  Line 29,093  28,255 

Southern   27,100  25,000 

Lou.  &  Nash 36,300  34,800 

Mob.  &  Ohio 29,615  29,065 

Nash.  C.  &  St.  L 36,886  35,647 

P.  &  L.  E 22,606  23,364 

L.  E.  &  W 25,541  25,341 


Miles  Per  Total  Locomotive. 

1908  1909 

P.  C.  C.  &  St.  L 34,404  32,400 

Vandalia   34,709  31,895 

C.  C.  C.  &  St.  L 27,902  28,432 

Pere  Marq 24,648  25,070 

Mich.   Central 37,280  35,143 

Wabash    32,586  29,822 

111.    Central 29,300  28,600 

C.  &  N.  W 33,008  33,332 

C.  B.  &  Q 26,800  26,800 

C.  M.  &  St.  P 35,873  37,012 

Union    Pac 29,950  28,500 

Mo.  Pac 29,500  30,700 

M.  K.  &  T ; . . .  29,614  29,841 

Frisco    26,350      •       25,900 

Tex.  &  Pac 26,146  25,382 

Colo.  &  Sou 26,564  26,881 

D.  &  R.  G 24,288  24,450 

Sou.  Pac.  Sys 28,400  26,300 

Great  Nor 22,580  22,400 


1910 

30,662 
21,322 
24,293 
27,613 
28,560 
26,090 
26,564 
25,064 
25,384 
28,048 
30,107 
30,044 
27,552 
37,901 
29,781 
37,030 
28,512 
28,430 


1910 

38,017 
34,612 
30,867 
26,510 
35,133 
31,895 
30,656 
36,529 
30,904 
39,490 
32,297 
31,988 
32,929 
27,113 
26,543 
31,468 
25,212 
30,247 
25,673 


1911 

29,861 
21,856 
24,845 
25,810 
30,084 
26,764 
25,908 
25,084 
24,817 
26,516 
30,584 
32,084 
27,259 
38,080 
32,043 
36,858 
25,283 
29,329 


1911 

37,272 
34,770 
30,538 
30,167 
33,487 
33,753 
30,135 
31,885 
28,739 
36,947 
29,574 
31,269 
29,931 
25,681 
26,493 
25,027 
25,326 
29,145 
23,995 


79 


'M 


80 


RATLT^OAD  OPERATING  COSTS 


fOOO  /^/L£5.~0 


/2 


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ZO 


24 


20 


3Z 


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/909 
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^/?/^. 


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r9e» 


r^/y/y/i.  /f/r. 


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/»oa 

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1909 
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19  n 


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194  f 


*9«S 


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a         /z         /e        20       24-       2a 
Fio.  37 


S2 


S« 


40 


LOCOMOTIVE  MAINTENANCE 


81 


/ooo  n/LC5.  -  o 


3 


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20 


24 


28 


32 


3$ 


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191 1 


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(909 
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/9/0 


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1911 


n/^.s^T 


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Fig.  38 


20 


24 


za 


-i2 


36 


40 


82 


RAILROAD  OPERATING  COSTS 
Maintenance  of  Locomotives — Per  IjOcomotivb  Mile. 


1909 


1910 


1908 

N.  Y.  Central 7.8  cents 

Erie    17.0 

N.  Y.  N.  H.  &H 7.2 

Penn.  R.  R 10.3 

D.  &  H 6.6 

D.  L.  &  W 6.4 

C.R.  R.  of  N.  J 8.5 

Lehigh  Valley 10.8 

Phila.  &  Read 10.9 

Ches.  &Ohio 8.0 

At.  Coast  Lines 5.5 

Seab.  Air  Line 8.1 

Southern   7.0 

Lou.  &  Nash 8.9 

Mob.  &  Ohio 4.9 

Nash.  C.  &St.  L 6.0 

P.  &  L.  E 6.2 

L.  E.  &  W 12.4 


Maintenance  of  Locomotives — Per  Locomotive  Mile. 


1911 


7.5  cents 

8.0  cents 

8 . 5  cents 

13.1 

11.0 

10.1 

7.2 

7.0 

8.4 

10.2 

10.0 

11.1 

7.8 

10.5 

10.9 

6.2 

7.0 

7.7 

9.1 

8.5 

8.7 

10.1 

9.0 

8.8 

10.1 

11.0 

11.2 

9.1 

8.8 

9.4 

4.9 

5.9 

6.4 

7.5 

7.5 

8.0 

7.1 

8.0 

8.5 

8.1 

8.0 

8.4 

6.0 

6.8 

7.6 

6.0 

6.3 

6.6 

6.4 

5.8 

8.3 

12.0 

10.2 

11.0 

1908 

P.  C.  C.  &  St.  L 7.5  cents 

Vandalia   6.7 

C.  C.  C.  &  St.  L 8.0 

Pere  Marq 7.3 

Mich.  Cent 5.4 

Wabash  8.6 

111.   Central 8.3 

C.&N.  W 5.4 

C.  B.  &  Q 7.5 

C.  M.  &  St.  P 5.4 

Union  Pac 11-2 

Mo.  Pac 6.4 

M.K.&T 7.6 

Frisco   7.7 

Texas  &  Pac 7.9 

Colo.  &  Sou 9.0 

D.  &R.  G 9.8 

Sou.  Pac.  Sys 10.8 

Great  Nor 9.1 


1909 

1910 

1911 

7.9  cents 

8.0  cents 

8.7  cents 

7.0 

8.1 

8.3 

8.2 

9.1 

9.0 

7.3 

6.7 

7.7 

6.5 

6.4 

7.0 

8.3 

8.8 

9.5 

9.3 

10.0 

10.5 

5.8 

6.0 

7.1 

7.8 

8.0 

7.5 

5.4 

6.0 

7.1 

11.4 

11.0 

12.1 

9.7 

9.0 

12.6 

9.0 

8.1 

8.8 

9.2 

11.0 

9.5 

8.9 

8.8 

11.9 

9.8 

9.1 

9.2 

13.6 

12.5 

12.4 

12.5 

12.0 

12.0 

7.9 

9.0 

9.5 

LOCOMOTIVE  MAINTENANCE 


88 


mifiTEmncE  or  iocomwt6 

fer  locomofm/^/k. 


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Fig.  39 


84 


RAILROAD  OPERATING  COSTS 

n/iiinEnmE:orLocommc5 

Fkr  Locomotii/e/1/k. 


cEtrrs.  -  o 


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1909 


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LOCOMOTIVE  MAINTENANCE 
Maintenance  of  Locomotives— Per  Tractive  Mile. 


1909 


1910 


2.47 

$2.51 

$2.72 

4.70 

3.67 

3.50 

2.80 

3.27 

3.71 

3.21 

3.13 

3.42 

2.52 

3.23 

3.30 

2.39 

2.51 

2.80 

3.71 

3.44 

3.45 

3.72 

3.24 

3.14 

3.80 

4.03 

4.03 

2.82 

2.68 

2.92 

2.43 

2.91 

3.13 

3.00 

2.97 

3.07 

2.43 

2.83 

2.83 

3.04 

2.88 

3.02 

2.30 

2.60 

2.94 

2.55 

2.57 

2.72 

1.93 

1.65 

2.31 

4.97 

4.20 

4.47 

1908 

N.  Y.  Central $2.69 

Erie   6.13 

N.  Y.  N.  H.  &H 3.17 

Penn.  R.  R 3.29 

D.  &H 2.16 

D.  L.  &  W 2.49 

C.  R.  R.  of  N.  J 3.46 

l^ehigh  Valley 4.02 

Phila.  &  Read 4.13 

C.  &  0 2.54 

Atl.  Coast  Line 2.73 

Seab.  Air  Line 3 .  30 

Southern   2.46 

Lou.  &  Nash 3.39 

Mob.  &  Ohio 1.87 

Nash.  C.  &St.  L 2.56 

P.  &L.  E 1.91 

L.  E.  &  W 4.96 


Maintenance  of  Locomotives — Per  Tractive  Mile. 


1908 

P.  C.  C.  &St.  L $2.72 

Vandalia   2 .  85 

C.  C.  C.&SiL 2.84 

Pere  Marq 3.23 

Mich.  Cent 2.25 

Wabash    3.58 

111.  Central 3.39 

C&N.  W 2.57 

C.  B.  &  Q 2.99 

C.  M.  &  St.  P.... 2.65 

Union   Pac 3.68 

Mo.  Pac 2.31 

M.  K.  &T 3.12 

Frisco   3.16 

Texas  &  Pac 3.84 

Colo.  &  Sou 3 .22 

D.  &R.  G 3.48 

Sou.  Pac.  Sys 4.12 

Great  Nor 3 .  08 


1911 


1909 

1910 

1911 

$2.87 

$2.76 

$3.09 

2.96 

3.30 

3.37 

2.79 

2.96 

2.82 

3.22 

2.85 

3.15 

2.66 

2.39 

2.47 

3.48 

^.71 

3.84 

3.80 

4.06 

4.17 

2.66 

2.78 

2.87 

3.18 

3.16 

2.83 

2.64 

2.79 

3.17 

3.78 

3.73 

3.96 

3.24 

3.19 

4.35 

3.67 

3.32 

3.37 

3.71 

4.17 

3.52 

4.33 

4.29 

5.82 

3.49 

3.22 

3.16 

4.96 

4.77 

4.47 

4.53 

4.40 

4.23 

2.67 

2.65 

2.85 

80 


86 


RAILROAD  OPERATING  COSTS 

mifiTE:mncE  onoco/70Tii/^5 


DOU^RS."  O 


/rrcf/rm/ii 


/9O0 

I9IO 

f9t  I 


£RI£: 


I900 

I909 
1910 

1*1  I 


nrmm 


191  I 


F^/fm/<R. 


/•O0 
/909 
/»lO 
1911 


DM. 


/9oa 


I9IO 
191  t 


DLikP/. 


i9om 
/9oa 

/9// 


/90» 


CM.  or/r.j.     7:.\ 


491 1 


i£m/f  mi/rr. 


mom 

I9C9 

/»/o 


miASr/f^/W. 


/9oa 

I909 


CScO. 


f9CS 
/•09 
t9IO 


m.  €0/1571/. 


1909 
/9»9 
1910 


3£:/JB  /J//?// 


fie 

f9i  I 


50(/r//jT/r// 


/9te 

1911 


1 0(/.l</r/i5H, 


f9*m 

t909 
I9IC 


n03.ik0///0 


/999 

1909 
/9/0 


f9ca 

/r/f5//.CA5TL  T.: 


/9f/ 


fd(/^. 


i9ce 

/909 
19  to 

t9ll 


l^.^M 


I909 
I9IO 
191 1 


DOlin/^S.  -  O 


Fia.  41 


mimtiAnc£  or  Loco/70T/y^5. 

Per  Tractive  H lie . 


Douf\R5.  -  0 


PC.CirdT.L 


l9*9 
/909 
19  lO 
1911 


/ArtDAL/A 


t90» 
/m09 
I9IO 
1911 


CCC.grSU. 


1900 
/9Q9 

I9ie 

1911 


i9oe 


'n/cH  c/r/yr. 


/90» 
/909 
1910 


U^MA5//. 


i9oa 

/»09 


/iL  a/rr 


/9oe 

/909 
1910 
till 


C3r/rk/. 


csm 


190  « 
190  9 
I9IO 
1911 


/9oa 

f909 

191 0 


C/1lr5T./^ 


/900 
/•09 
tmio 

ft  t 


mo/r/'AC. 


/9oa 

/909 

imio 

1911 


/70.P/1C. 


AIKScT 


r/^/5C0. 


fOB 
1909 

f9/e 

/9II 


196  9 

/0e9 

/9I0 
191  > 


1909 
/909 
/9/0 
/9I I 


T^x.&mc 


/9oe 

/909 
/9/0 

/9tl 


COLCS-SO^/. 


/90« 
/909 

/9n 


DM6. 


f9oa 

f909 
'9tO 
/9tl 


5oaPACsrs 


I90* 
/909 
/9/0 


c/^T/ro/?. 


/9oe 


/9/0 
f9'l 


OOUfl/^5. 


\ 


Fig.  42 


88 


BAILROAD  OPERATING  COSTS 


B 


%  i 


The  following  data  taken  from  these  tables  serves  to  further  emphasize  how 
erroneous  conclusions  may  be  reached  in  employing  either  the  "locomotive"  or  the 
"locomotive  mile"  in  place  of  "tractive  mile"  as  the  comparative  unit. 


Maintenance  of  Locomotives 
1911 

Per  Locomo-  Per  Locomo-  Per  Trac- 

tive tive  Mile  live  Mile 

Penn  R.  R $2,865  11 .1  cents  $3.42 

New  Haven 2,107  8.4  3.71 

N.  Y.  Central $2,559  8.5  cents  $2.72 

C.  R.  R.  ofN.  J 2,254  8.7  3.45 

Del.  &  Hud $3,283  10.9  cents  $3.30 

Erie   2,210  10.1  3.60 

Locomotive  maintenance  on  the  Pennsj'lvania  R.  R.  in  1911  shows  an  increase 
of  35  per  cent,  "per  locomotive"  over  the  New  Haven,  an  increase  of  32  per  cent, 
"per  locomotive  mile"  and  a  decrease  of  8  per  cent,  "per  tractive  mile." 

The  New  York  Central  shows  an  increase  of  13  per  cent,  "per  locomotive"  as 
compared  with  the  Central  R.  R.  of  New  Jersey,  a  decrease  of  2  per  cent,  "per  loco- 
motive mile"  and  a  decrease  of  21  per  cent,  "per  tractive  mile." 

Maintenance  costs  on  the  Erie  were  S3  per  cent,  less  "per  locomotive"  than 
the  Delaware  &  Hudson,  7  per  cent,  less  "per  locomotive  mile,"  but  were  6  per  cent, 
more  "per  tractive  mile." 


Maintenance  of  Locomotives 

1911 

Per  Locomo-  Per  Locomo- 
tive tive  Mile 

Southern   Ry $2,551  8.5  cents 

Atl.  Coaat  Line 1,970  6.4 

Lou.  &  Nash $3,228  8.4  cents 

111.  Central 3,175  10.5 

Union  Pac $3,604  12.1  cents 

Burlington   2,164  7.6 


Per  Trac- 
tive Mile 

$2.83 
3.13 


$3.02 
4.17 


$3.96 
2.83 


LOCOMOTIVE  MAINTENANCE 


89 


Locomotive  maintenance  costs  in  1911  on  the  Southern  were  29  per  cent, 
higher  "per  locomotive"  than  on  the  Atlantic  Coast  Line,  33  per  cent,  higher  "per 
locomotive  mile"  and  9.5  per  cent,  lower  "per  tractive  mile." 

The  Louisville  &  Nashville  costs  show  a  1.5  per  cent,  increase  "per  locomotive" 
when  compared  with  the  Illinois  Central,  20  per  cent,  decrease  "per  locomotive 
mile"  and  27.5  per  cent,  decrease  "per  tractive  mile." 

The  Union  Pacific  with  maintenance  costs  "per  locomotive"  and  "per  loco- 
motive mile"  61  per  cent,  higher  than  the  Burlington  are  only  ^0  per  cent,  higher 
than  the  latter  "per  tractive  mile." 


Maintenance  of  Locomotives 


1911 

Per  Locomo- 
tive 

M.  K.  &  T : $2,633 

Frisco   2,448 

Tex.  &  Pac $3,165 

D.  &R.  G 3,151 

Sou.   Pac $3,499 

Great  Nor 2,280 


Per  Locomo- 
tive Mile 

8 . 8  cents 
9.5 


11.9  cents 
12.4 


12.0  cents 
9.5 


Per  Trac- 
tive Mile 

$3.37 
3.52 


$5.82 
4.47 


$4.23 
2.85 


On  the  M.  K.  &  T.  in  1911  locomotive  maintenance  costs  show  an  increase  of 
7  per  cent,  "per  locomotive"  as  compared  with  the  Frisco,  a  decrease  of  7  per  cent. 
"per  locomotive  mile"  and  a  decrease  of  4-3  per  cent,  per  tractive  mile. 

The  Texas  &  Pacific,  with  maintenance  costs  "per  locomotive"  less  than  1  per 
cent,  higher  than  the  Denver  &  Rio  Grande,  shows  4  P^r  cent,  less  "per  locomotive 
mile"  and  30  per  cent,  more  "per  tractive  mile." 

Comparing  the  Southern  Pacific  with  the  Great  Northern  locomotive  main- 
tenance costs  on  the  former  road  show  an  increase  of  53  per  cent,  "per  locomotive," 
an  increase  of  26  per  cent,  "per  locomotive  mile"  and  an  increase  of  48  per  cent, 
"per  tractive  mile." 

These  studies  cannot,  however,  be  carried  to  a  definite  conclusion,  due  to  the 
absence  of  the  necessary  data  in  the  records  of  the  Interstate  Commerce  Com- 
mission. For  a  thorough  analysis  of  locomotive  maintenance  costs  should  be  sep- 
arated among  freight,  passenger  and  switch  service.  The  miles  in  each  class  of 
service  should  also  be  separated. 

The  information  on  file  in  these  records  should  also  be  sufficiently  subdivided 
as  to  enable  the  maintenance  costs  to  be  more  satisfactorily  determined  as  between 
compound  and  single  expansion  locomotives. 


90 


KATLROAD  OPERATING  COSTS 


I 


Railroads  operating  in  a  thickly  settled  country  have  access  to  a  well-supplied 
labor  market  and.  in  consequence,  the  wages  are  considerably  lower  than  railroads 
operating  in  a  sparsely  settled  country  where  labor  is  scarce.  Since  labor  consti- 
tutes 60  per  cent,  of  the  maintenance  costs,  these  variations  in  the  raU»  of  wages 
will  have  a  substiintial  influence  on  the  total  maintenance  costs,  particularly  be- 
tween eastern  and  western  roads.  While  there  is  not  the  same  variation  in  cost* 
of  material  as  those  for  labor,  there  is  considerable  difference  in  the  costs  to  rail- 
roads operating  in  the  manufacturing  locality  as  compared  with  those  roads  which 
do  not  touch  the  manufacturing  centers. 

In  reporting  their  maintenance  costs  to  the  Interstate  Commerce  Commission, 
labor  and  material  costs  should  be  segregated  to  permit  the  situation  to  be  thor- 
oughly analyzed. 

Sutticient  data  should  also  be  available  to  accurately  determine  the  effect  of 
grades  and  other  operating  conditions  upon  the  maintenance  costs. 


Passenger   Car  Maintenance 


CHAPTER  VI. 


Passenger  car  maintenance  in  1911  was  approximately  8  per  cent,  of  the  total 
expenditure  for  maintenance  of  equipment  or  about  2  per  cent,  of  the  total  opera- 
ting expense,  and  is  therefore  of  relative  minor  importance  when  considered  with 
the  maintenance  of  locomotives  or  freight  cars. 

As  with  freight  car  maintenance,  the  usual  method  of  comparison  is  on  the 
basis  "per  car  owned,"  and  the  accompanying  chart,  Fig.  43,  shows  the  maintenance 
cost  on  this  basis  during  1911  for  a  number  of  representative  roads.  The  extremes 
in  this  table  are  $317  on  the  Central  Railroad  of  Xew  Jersey  and  $1,056  on  the 
Louisville  &  Nashville,  a  difference  of  233  per  cent. 

If  the  cost  per  passenger  car  is  the  proper  basis  for  comparison  from  these 
figures,  it  is  evident  that  passenger  car  maintenance  on  the  L.  &  N.  is  more  than 
three  times  what  it  should  be. 

Maintenance  of  Passenger  Cars  per  Passenger  Car. 

1911. 


N.  Y.  N.  H.  &  H $405.73 

B.  &  M 479.48 

N.  Y.  Central 759.65 

Penn.  R.  R 820.86 

D.  &  H 430.48 

D.  L.  &  W 650.47 

Lehigh  Valley 483.91 

P.  &  R 853.14 

C.  R.  R.  of  N.  J 317.10 

Erie   479.50 

B.  &  0 685.17 

N.  «&  W 778.92 

C.  &  0 788.07 

A.  C.  L 812.60 

S.  A.  L 801 .  50 

Sou.  Ry 673.56 

L.  &  N 1,056.31 

M.  &  0 705.86 

Nash.  C.  &  St.  L 804.55 

L.  S.  &M.  S 978.95 


Penna  Co $646.64 

N.  Y.  C.  &  St.  L 785.33 

Mich.   Central 586.70 

Pere  Marq 635.62 

P.  C.  C.  &  St.  L 815.40 

Vandalia   1,038.21 

C.  C.  C.  «&  St.  L 735.84 

Wabash    782.15 

C.  &  A 923.17 

M.  St.  P.  «&:  S.  S.  M 902.14 

C.  G.  W 868.22 

111.   Central 890.97 

C.  B.  &  Q 571.54 

C.  &  N.  W 495.23 

C.  R.  L&P 843.55 

Union   Pac 998.79 

Santa  Fe  Sys 936.33 

Sou.  Pac.  Sys 884.66 

Nor.   Pac... 511.70 

Grt.  Nor 587.67 


91 


98 


EAILEOAD  OPERATING  COSTS 

miiiTEmnc[orp/i55£mR  cms. 

Per  Passeti^er  Car. 

1911. 


DOLLARS. 

/?.^//. 

F/^/r/r/1.  CO. 
/y.rc3i^srji. 

/7/C//.  C/^/YT 

//i/YMl/ZI. 
CCCJ^JZjC. 

/y/13/fJ/Y. 

/7.S7:^ar5.3./7. 

cav. 

/U  C^/YT. 

c.s.s^a. 
esrrrk/. 

C.R/JcP. 

arf/o/f  F/\c, 
501/.F/IC.  3rs. 
6fa  rro/t. 


OOll/f^S.^i 


/zoo 


200 


&00 


/eoo 


PASSENGER  CAR  MAINTENANCE 


93 


/:^oo 


Fig.  43 


Of  similar  comparison  is  the  performance  on  two  railroads  operating  in  the 
same  general  territory,  the  Illinois  Central  with  an  average  of  $891  per  car  and  the 
Burlington  with  an  average  cost  of  $571  per  car.  With  the  car  unit  and  the  Bur- 
lington cost  as  a  standard,  the  Illinois  Central  should  reduce  their  passenger  car 
maintenance  costs  36  per  cent. 

The  same  factors,  however,  which  serve  to  modify  the  value  of  the  car  as  a 
comparative  unit  in  freight  car  maintenance  are  similarly  influential  in  affecting 
its  value  in  passenger  car  maintenance,  viz.,  number  of  cars  owned  and  the  average 
mileage.  The  size,  design  and  material  of  construction  will  also  affect  the  average 
maintenance  cost  per  car. 

With  the  same  design,  size  and  class  of  passenger  car  the  maintenance  should 
vary  with  the  average  miles  run,  and.  the  accompanying  table  and  chart,  Fig.  44, 
show  the  average  mileage  in  1911  per  passenger  car  owned  on  the  same  railroad  as 
those  illustrated  in  Fig.  43. 

In  this  comparative  table  the  poorest  performance  is  the  Central  Railroad  of 
New  Jersey,  with  27,519  miles,  and  the  best  record  is  the  Union  Pacific,  with 
126,698  miles,  a  variation  of  360  per  cent. 

With  further  reference  to  the  comparison  of  the  Central  Railroad  of  New  Jer- 
sey with  the  L.  &  N.,  the  data  just  quoted  indicates  the  necessity  of  carrying  the 
study  for  further  consideration.  The  average  miles  run  of  passenger  cars  on  the 
former  road  was  27,519  miles  and  on  the  latter  road  85,209  miles,  a  difference  of 
210  per  cent. 

Miles  per  Passenger  Car  Owned. 


1911. 


Miles 

N.  Y.  N.  H.  &H 30,104 

B.  &  M 31,368 

N.  Y.  Central 64,405 

Penn.  R.  R 62,810 

D.  &  H 31,618 

D.  L.  &  W 43,846 

Leh.  Valley 45,339 

P.  &  R 33,996 

C.  R.  R.  of  N.  J 27,519 

Erie  46,457 

B.  &0 71,391 

N.  &  W 55,137 

C.&O •• 67,628 

S.  A.  L 80,089 

Sou.  Ry....: 75,374 

L.  &  N 85,209 

M.  «&0 67,723 

Nash.  C.  &  St.  L 60,818 

L.  S.  &M.  S 97,528 


Miles 


Penn.  Co 80,291 

N.  Y.  C.  &  St.  L 93,608 

Mich.  Central 90,988 

Pere  Marq 44,696 

P.  C.  C.&St.L 88,663 

Vandalia  86,497 

C.C.  C.&St.L 85,936 

Wabash 89,640 

C.  &  A 90,157 

M.  St.  P.  &  S.  S.  M 83,116 

C.  G.  W 76,553 

111.   Central 78,940 

C.  B.  &Q 87,206 

C.  &N.  W 58,829 

C.  R.  I.  &P 89,538 

Union  Pac 126,698 

Santa  Fe  Sys 89,662 

Sou.  Pac.  Sys 77,525 

Nor.  Pac 62,313 

Grt.  Nor 69,770 


94 


3 


i 


■! 


KAILROAD  OPERATING  COSTS 


nm  mmsmctR  cmomm 


&/. 


lOCO  niLBS.  -    o 

/fTl  CO/fSll/. 
3^/!S./f//^  It. 

/703  S'O/i/O. 

LS.irns 
Fcc^sri. 

tYABA5/i. 

c3&a 

an/o/Y  P/1C. 
jAriTA  f£'  srs. 
sou.f/ic.srs 

looorr/ies.  —  o 


/4-0 


PASSENGER  CAR  MAINTENANCE 


95 


ZO 


/^o 


Fia.  44 


•1 


If  the  passenger  cars  on  the  C.  R.  R.  of  N.  J.  had  averaged  the  same  mileage 
as  on  the  L.  &  N.,  the  number  of  cars  on  the  former  road  would  have  been  reduced 
from  642  to  206,  resulting  in  an  increase  in  the  average  maintenance  cost  per  car 
for  the  year  1911  from  $317  to  $988,  an  increase  of  212  per  cent. 

The  figures  thus  obtained  show  a  variation  in  maintenance  cost  "per  passenger 
car"  of  less  than  7  per  cent,  on  these  two  railroads,  as  compared  with  the  variation 
of  233  per  cent,  previously  quoted. 

On  the  Burlington  the  average  miles  per  passenger  car  was  87,209  miles  as 
compared  with  78,940  miles  on  the  Illinois  Central,  a  difference  of  8,269  miles, 

or  9.5  per  cent. 

If  the  passenger  cars  on  the  Illinois  Central  had  averaged  the  same  mileage 
as  the  Burlington,  the  number  of  cars  required  would  have  been  reduced  from  887 
to  803,  or  sufficiently  to  raise  the  cost  per  ear  from  $891  to  $984. 

Comparisons  of  this  nature  could  be  carried  on  extensively  and  the  results  are 
interesting,  but  have  little  value.  They  merely  serve  to  demonstrate  the  futility  of 
making  any  use  of  the  passenger  car  unit  in  comparing  the  performance  of  different 

railroads. 

The  same  may  be  said  of  this  unit  in  comparing  the  performance  on  the  same 
railroad  for  different  periods.  For  example,  the  C.  &  N.  W.  maintenance  costs  were 
$562  per  passenger  car  in  1910  and  $495  per  car  in  1911,  a  reduction  of  12  per  cent. 

In  1910  this  road  reported  a  total  of  1,452  passenger  cars  and  1,712  cars  in 
1911,  an  increase  of  17.8  per  cent.,  while  the  average  mileage  per  passenger  car  de- 

Maintenance  of  Passenger  Cars  per  1,000  Passenger  Car  Miles. 

1911. 


N.  Y.  N.  H.  &H $13.48 

B.  &  M 15.29 

N.  Y.  Central 11.79 

Penn.  R.  R 13.07 

D.  &  H 13.62 

D.  L.  &  W 14.84 

Leh.  Valley 10.67 

P.  &  R 25.09 

C.  R.  R.  of  N.  J 11.52 

Erie   10.32 

B.&  0 9.60 

N.  &  W 14.13 

C.  &  0 11.65 

Atl.  Coast  Line 11.14 

S.  A.  L 10.01 

Sou.  Ry 8.94 

L.  &  N. 12.40 

M.  &  0 10.42 

Nash.  C.  &  St.  L 13.23 

L.  S.  &  M.  S 10.04 


Penna.  Co 

N.  Y.  C.  &  St.  L. 
Mich.  Central . . .  . 

Pere  Marq 

P.  C.  C.  &  St.  L. 

Vandalia   

C.  C.  C.  &St.  L., 

Wabash 

C.  &  A 

M.  St.  P.  &  S.  S. 

C.  G.  W 

111.  Central 

C.  B.  &  Q 

C.  &  N.  W 

C.  R.  I.  &P.... 

Union  Pac 

Santa  Fe  Sys. . . 
Sou.  Pac.  Sys. . . 

Nor.  Pac 

Grt.  Nor 


M, 


$8.05 

8.38 

6.45 

14.22 

9.20 

12.00 

8.56 

8.73 

10.24 

10.85 

11.. 34 

11.29 

6.55 

8.42 

9.42 

7.88 

10.44 

11.41 

8.21 

8.42 


.  I 


96 


KAILKOAl)  OI'KHATING  (  OSTS 

mimcmncE  oFP/isscmcR  cms. 

Per  /OOO  Passer^er  Car/7/7e5. 


m. 


DOZJL/iftS.  —  O 


/irCEHTRAL 

lemH  VAL. 

B.^O. 

ATI.  COAST  U 
5EAB./\/Al/. 

5oa/%r 
rfoB.^otf/o. 

/YASHCJ^STl. 

/r/y/YA.  CO. 
A(Kcjrsr/. 
/7/c/f.  c£/yr 

/JfTP^  /7/JAa. 

yA/ri?Ai/A. 

ccc^sn. 

ATSTFJ-SSn 
C6J/. 

/U.  CC/YT. 

cB.^a. 

m/oAf  p^c 
sA/rr/f  A^srs 
5oc(/yfc  srs. 

ATO/?.  PAC 
a  AT  rtOA 


OMl/l^.-O 


/S      /O      20      2Z      24^      ;i6 


/€       /O     JtO      22     2¥      26 


PASSENGER  CAR  MAIXTEXAXCE 


97 


Fig.  45 


creased  11.7  per  cent,  in  1911  as  compared  with  1910.  The  reduction  in  the  average 
maintenance  cost  per  car  was  entirely  due  to  the  increase  in  the  number  of  cars 
owned  rather  than  to  any  improvement  in  performance,  as  the  average  cost  per 
1,000  miles  run  increased  from  $8.36  in  1910  to  $8.42  in  1911. 

Further  similar  comparisons  can  be  made  among  the  different  railroads,  but 
as  has  been  mentioned  above,  the  resulting  figures  are  of  but  little  practical  value. 

Passenger  car  maintenance  costs  are  in  direct  relation  to  the  weight  and  the 
distance  carried.  The  gross  ton  mile  is  therefore  the  most  satisfactory  unit  as  in 
the  case  of  freight  cars,  but  this  figure  is  not  reported  to  the  Interstate  Commerce 
Commission.  Many  railroads  do  not  maintain  any  record  of  gross  ton  mileage  in 
passenger  service. 

The  only  data  available  for  any  comparison  of  passenger  car  maintenance  is 
on  the  basis  of  miles  run,  and  the  accompanying  table  shows  the  average  costs  per 
1,000  car  miles  in  1911,  which  are  illustrated  in  Fig.  45. 

The  extremes  are  the  Michigan  Central  with  an  average  cost  of  $6.45  per  1,000 
car  miles  and  the  Reading  with  $25.09  per  1,000  miles,  a  variation  of  289  per  cent. 

It  is  interesting  to  continue  the  study  of  the  railroads  mentioned  above. 

Maintenance  Average  Maintenance  Per 

Per  Car  Miles  Run  1000  Miles 

C.  R.  R.  ofN.  J $317.00  27.519  $11.52 

Lou.  &  Nash 1,056.00  85.209  12.40 

111.   Central $891.00  78.940  $11.29 

Burlington   571.00  87.206  6.55 

The  Central  Railroad  of  New  Jersey  had  an  average  cost  of  $11.52  per  1,000 
car  miles  and  the  Louisville  &  Nashville  an  average  of  $12.40,  an  entirely  different 
aspect  from  the  comparison  on  the  car  unit  basis.  The  same  is  true  of  the  Illinois 
Central  with  an  average  cost  of  $11.29  per  1,000  miles  and  the  Burlington  with 
$6.55  per  1,000  miles. 

These  conclusions  cannot  be  considered  as  final  since  the  size  and  construction 
of  equipment,  operating  characteristics  and  the  demands  of  the  traveling  public  all 
have  bearing  on  the  repair  costs,  and  comparisons  among  different  roads  with  full 
knowledge  of  all  conditions  are  of  doubtful  value. 

Unfortunately,  the  Interstate  Commerce  Commission  records  do  not  contain 
any  data  with  reference  to  the  size,  material  of  construction,  capacity  or  weight  of 
the  passenger  cars  of  any  of  the  railroads.  As  cars  70  feet  in  length  with  six-wheel 
trucks  will  cost  more  to  maintain  than  cars  55  feet  in  length  with  four-wheel  trucks 
it  is  impractical  to  continue  the  present  study  in  the  absence  of  this  data. 

Data  should  also  be  on  file  showing  the  number  and  size  of  cars  of  all  steel  con- 
struction, wooden  cars  with  steel  underframes,  wooden  cars  with  steel  reinforcement 
and  all  wooden  cars,  together  with  the  total  mileage  made  by  the  cars  of  each  type 
to  permit  of  more  conclusive  analytical  studies. 

The  demands  of  the  traveling  public  and  the  fluctuations  in  volume  of  both 
local  and  through  traffic  influence  the  number  of  passenger  cars  owned  by  any  rail- 
road, the  average  miles  run  and  the  maintenance  costs. 


98  RAILROAD  OPERATING  COSTS 

Number  of  Passenger  Cars  Owned  per  100  Miles  of  Total  Track. 


1911. 


N.  Y.  N.  H.  &H 82.6 

B.  &  M 67.0 

N.  Y.  Central 41.6 

Penn.  R.  R 35.5 

D.  &  H 33.1 

D.  L.  «&W 60.4 

Leh.  Valley 26.2 

P.  &R 52.6 

C.  R.  R.  of  N.  J 69.0 

Erie   38 . 8 

B.  &  0 20.3 

N.  &  W 16.8 

C.  &  0 13.5 

A.  C.  L 13.0 

S.  A.  L 11.4 

Sou.  Ry 14.4 

L.  &N 12.7 

M.  &  0 11.7 

Nash.  C.  &St.  L 19.3 

L.  S.  &  M.  S 24.7 


Penna.   Co 28.5 

N.  Y.  C.&St.  L 15.7 

Mich.  Central 20.3 

Pere  Marq 15.5 

P.  C.  C.&St.  L 24.7 

Vandalia  18.8 

C.  C.  C.&St.  L 21.0 

Wabash  16.3 

C.  &  A 17.2 

M.  St.  P.  &  S.  S.  M 9.0 

C.  G.  W.... 13.0 

111.  Central 16.5 

C.  B.  &Q 13.1 

C.  &  N.  W 19.5 

C.  R.  I.  &P 13.3 

Union  Pac 12 . 8 

Santa  Fe  Sys 13.7 

Sou.  Pac 21.7 

Nor.  Pac 16.7 

Grt.  Nor 13.3 


For  the  purpose  of  studying  the  variation  in  the  amount  of  passenger  equip- 
ment and  the  volume  of  passenger  traffic,  two  tables  and  illustrative  charts  are  sub- 
mitted, showing  the  number  of  passenger  cars  owned  per  100  miles  of  total  track 
(exclusive  of  yards  and  sidings),  Fig.  46,  and  the  traffic  density,  i.  e.,  1,000  pas- 
senger miles  per  mile  of  total  track,  Fig.  47,  for  the  same  railroads,  illustrated  in 

Figs.  43,  44  and  45. 

Comparison  of  the  two  tables  indicates  as  extensive  variation  in  the  number  of 
passenger  cars  per  mile  of  track  as  in  the  traffic  density,  as  the  number  of  cars 
owned  varies  from  9.0  on  the  "Soo  Line"  to  82.6  cars  on  the  New  Haven— a  dif- 
ference of  818  per  cent.— and  the  traffic  density  varies  from  56.2  on  the  Mobile  & 
Ohio  to  498.3  on  the  New  Haven,  a  difference  of  803  per  cent. 

A  close  study  of  the  two  tables,  however,  reveals  that  a  direct  relation  does 
not  exist  between  the  amount  of  equipment  and  the  volume  of  traffic,  particularly 
between  roads  similarly  situated,  as  the  following  deductions  from  these  tables  serve 

to  illustrate: 

Cars  Owned  Traffic  Density 

N.  Y.,  N.  H.  &  H 82.6  498.3 

Reading   52.6  252.6 

D.&H 33.1  116.5 

I^h.  Vallev '26.2  121.2 


PASSENGER  CAR  MAINTENANCE 

Per /OO/liks  of  Track. 


M 


1911. 


-O 


/c 


20 


SO 


^O 


SO 


60 


70 


SO 


l£^/^H  /Al. 

PhlLR.irR^AD 

CRROr/Yc/. 

/r/9/f 

B.^0. 

C.S'O. 

ATL  CO/I5T  U/i£ 

5t/iB  AIR  L/rr£ 

50O.RK 

lOU.XHASH. 

/Y/15tiC&  5T.L. 
Z.^.J<:/7.S. 

/^rfm.  CO. 

/i.KC^5TL 

n/c/yc£iiT 

/^C.CSrSn. 

MnOAUA. 

CCCS(5U. 

J/MA5/r 

C.St  A. 

n5TRJ(S3./^. 

ca.h/. 
/u.  c£/yr 

CS&Q. 

cgf/yk< 

CR/.Jt'/? 

(//y/m  F/fc 
smr/ifisrs. 

50(/.F/1C3rS 

/y^FF/iC 

tiRT./yOF 


30 

Fig.  46 


40 


so 


6C 


^  sa 


\i 


100 


RAILROAD  OPERATIXG  COSTS 

Passenger  Traffic  Density. 
1,000  Passenger  Miles  per  Mile  of  Track. 

1911. 


N.  Y.  N.  H.&H 498.3 

B.  &  M 301. G 

N.  Y.  Central 398.5 

Penn.  R.  R 270.0 

D.  &  H 116.5 

D.  L.  &  W 349.1 

Lehigh  Valley 121.2 

P.  &  R 252. G 

C.R.  R.ofN.J 349.8 

Erie    198.5 

B.  &  0 136.6 

N.  &  W 80.9 

C.&O 95.9 

A.  C.  L 75.6 

S.  A.L 72.5 

Sou.  Ry 100.4 

L.&N 106.8 

M.  &  0 56.2 

Nash.  C.  &  St.  L 95.4 

L.  S.  &  M.  S 213.5 


Pemia.  Co 193.6 

N.  Y.  C.  &  St.  L 152.5 

Mich.  Central 155.6 

Pere   Marq 86 . 9 

P.  C.  C.&St.L 198.1 

Vandalia    130.7 

C.C.  C.&St.L 183.8 

Wabash    147.0 

C.  &  A 177.6 

M.  St.  P.  &  S.  S.  M 66.8 

C.  G.  W 93.2 

111."  Central 130.5 

C.  B.  &Q 119.5 

C.  &N.  W 120.1 

C.  R.  L&P 124.3 

I'nion    Pac 137 . 0 

Santa  Fe  Sys 118.9 

Sou.  Pac.  Sys 191.3 

Nor.  Pac 109.0 

Grt.  Nor 78.8 


Among  the  eastern  roads  the  Reading,  with  a  traffic  density  of  approximately 
50  per  cent,  of  the  New  Haven,  has  63.7  per  cent,  as  much  equipment  per  mile  as 
the  latter  road.  The  Lehigh  Valley,  with  4  per  cent,  greater  volume  of  traffic  than 
the  Delaware  &  Hudson,  handles  it  with  21  per  cent,  less  equipment  on  the  same 

basis.  ,  ^    ^  TN     -x 

Cars  Owned  Traffic  Density 

13.5  95.9 

16.8  80.9 


C.  &  0.. 

N.  &  W. 


12.7 
19.3 


106.8 
95.4 


L.  &  N 

N.  C.  &  St.  L 

In  the  south  the  Norfolk  &  Western  requires  24.5  per  cent,  more  equipment  per 
mile  than  the  Chesapeake  &  Ohio  with  15.6  per  cent,  less  traffic  density.  The  Louis- 
ville &  Nashville  with  34.3  per  cent,  less  equipment  handles  a  volume  of  traffic  on 
the  same  basis  11.8  per  cent,  greater  than  the  Nashville,  Chattanooga  &  St.  Louis. 

Cars  Owned  Traffic  Density 

20.3  155.6 

15.5  86.9 


Mich.    Cent. 
Pere    Marq. 


Northwestern 


Burlington 


19.5 
13.1 


120.1 
119.5 


PASSENGER  CAR  MAINTENANCE 

m5[mf<  mArric  ir/f5/rK 

1000  Fassengcr  f7//g5  Per  /likaf  Track. 


101 


19/1. 


3.9:  n 
Iftlim  VAL. 

a^o. 

f*^rfm.  CO. 
/rrc^STL. 

/7/M  C^/YT. 
/?if/f^  HARa. 

mno/iL/A. 

l^AdASh. 

/U.  C£liT. 
C.S/Y.hT 

a/r/orr  fac. 
S/Rrrr/r  f£  srs. 

soc/.F/PC  srs. 
noR.  F/ic 
a/<r  nofv. 

/OOO  /7/lf6.  -  O 


sso     4-00       '4>sro      jroo 


J^SO       JOO 


4SO       SCO 


Fig.  47 


M 


I'  i  i 


f  fe 


102 


RAILROAD  OPERATING  COSTS 


In  the  middle  states  the  Michigan  Central  requires  but  31  per  cent,  more  equip- 
ment per  mile  than  the  Pere  Marquette,  when  the  volume  of  traffic  is  79.2  per  cent, 
in  excess  of  the  latter  road.  With  equal  traffic  densities  the  Northwestern  has  in 
service  48.8  per  cent,  more  passenger  cars  per  mile  of  track  than  the  Burlington. 


Union   Pacific . . 
Great  Northern. 


Cars  Owned 

Traffic  Density 

12.8 

137.0 

13.3 

78.8 

On  western  roads  the  Great  Northern  owns  3.8  per  cent,  more  passenger  equip- 
ment per  mile  of  track,  while  the  volume  of  traffic  is  42.5  per  cent,  less  than  the 
Union  Pacific. 

Further  study  discloses  a  probable  reason  for  these  variations,  i.  e.,  the  inter- 
change of  passenger  equipment. 

While  the  interchange  of  passenger  cars  is  not  nearly  as  extensive  as  that  of 
freight,  the  passenger  traffic  agreements  among  various  connecting  trans-continental 
lines  are  sufficient  to  make  the  foreign  car  mileage  an  important  item,  exerting  in- 
fluence upon  both  equipment  requirements  and  maintenance  costs. 

The  Union  Pacific,  for  example,  had  sufficient  traffic  agreements  so  that  40  per 
cent,  of  the  total  passenger  car  mileage  credited  to  that  road  in  1910  was  made  by 
foreign  cars.  It  is  evident  that  such  extensive  interchange  will  modify  any  con- 
clusions that  may  be  reached  as  to  mileage  or  maintenance  costs  of  passenger  equip- 
ment, though  unfortunately  the  necessary  data  is  not  contained  in  the  Interstate 
Commerce  Commission  records. 

In  order  to  make  a  thorough  analysis  of  passenger  car  maintenance  on  any 
railroad  it  is  necessary,  in  addition  to  the  type  and  construction  of  equipment,  to 
know  the  gross  ton  mileage  and  maintenance  costs  of  the  cars  owned  and  the  main- 
tenance and  the  gross  ton  mileage  of  foreign  cars  handled  by  that  particular  road. 
It  is  to  be  hoped  the  Interstate  Commerce  Commission  will  appreciate  the  impor- 
tance of  having  this  data  on  file  for  the  purpose  of  permitting  conclusive  analytical 
studies. 

Shop  Machinery  and  Tools. 

Having  thus  treated  on  the  maintenance  of  freight  cars,  locomotives  and  pas- 
senger cars,  which  items  constitute  80  per  cent,  of  the  total  maintenance  of  equip- 
ment expenses  and  12  per  cent,  is  consumed  by  depreciation  charges,  there  are  but 
few  items  further  that  are  worthy  of  consideration. 

As  most  railroads  keep  a  record  of  the  maintenance  of  shop  machinery  and 
tools,  which  costs  are  approximately  3  per  cent,  of  the  total  maintenance  of  equip- 
ment, the  figures  for  the  representative  roads  are  shown  herewith.  These  expenses 
are  to  a  large  extent  dependent  upon  the  size  and  number  of  locomotives  repaired 
and  the  locomotive  tractive  mile  is  the  comparative  unit  employed  in  the  accompany- 
ing table  and  chart,  Fig.  48. 

As  previously  stated,  the  subjects  which  have  been  considered  constitute  the 
principal  items  of  equipment,  though  some  few  railroads  have  maintenance  of  elec- 


PASSENGER  CAR  MAINTENANCE 


103 


trie  locomotives,  maintenance  of  floating  equipment,  which  consume  a  considerable 
portion  of  their  total  maintenance  of  equipment  costs.  These  items  are,  however, 
confined  to  such  a  few  railroads  that  a  study  of  their  maintenance  costs  is  not  of 
sufficient  advantage  to  be  given  consideration  at  this  time. 

Maintenance  of  Shop  Machinery  and  Tools  per  Locomotive 

Tractive  Mile. 


1911. 


Cents 

N.  Y.  N.  H.  &H 40.6 

Penn.  R.  R 29.5 

N.  Y.  Central 21.6 

D.  L.  &W 28.8 

D.  &  H 17.4 

Lehigh  Valley 16.3 

C.  R.  R.  of  N.J 31.5 

P.i&R 31.3 

B.  &  0 24.3 

Erie   26.4 

Ches.  &  Ohio 25.0 

Atl.  Coast  Line 23.2 

Seab.  Air  Line 19.3 

Cent,  of  Geo 32.1 

Southern   19.1 

Lou.  &  Nash 20.9 

Nash.  C.  &  St.  L 26.7 

Mob.  &  Ohio 20.9 


Cents 

L.  S.&M.  S 24.2 

P.  C.  C.&St.  L 26.7 

111.  Cent 32.1 

Wabash 19.8 

C.  &  A 23.7 

C.B.&Q 26.8 

C.  R.  L&P 18.4 

Frisco   19.6 

K.  C.  Sou 24.7 

M.  K.  &T 18.4 

Tex.  &  Pac 48.7 

Mo.  Pac 22.9 

M.  St.  P.  &  S.  S.  M 20.6 

C.  G.  W 26.4 

D.  &R.  G 36.0 

Union  Pac 24 . 3 

Santa  Fe  Sys 18.2 

Sou.  Pac.  Sys 21.2 


104 


RAILROAD  OPERATING  COSTS 


mmmfic^  o"  5H0F  mc/i//itRr  Am  mis. 

Per  locomot/'/e  Tracf/Ve  /^//e. 


m. 


c^/rrJ.  -  o 


/tf 


^e 


/"H/lA^Jc/i^AD. 
S.SrO, 

r/^5^.  ^  OH/O. 
ATl.COASr/L/. 
S/^AB.A/Zil/. 

lOUJtAfAS/f. 

/YAS/f.C.JfSTZ. 

A70dSfO/f/0 

/u.  c^/yr 

A/ASAS/f 

c.B.gca, 

/r/^/sco. 

A,  C  SOC/. 
A7.AJ(r, 

A7/>.PAC. 

{/Af/O^Y  PAC, 
5A/YTAr£Sr^. 


Jd^ 


^-e 


-#^ 


Fig.  48 


' 


Conducting  Transportation 


CHAPTER  VII. 


From  the  nature  of  their  service,  railroads  are  public  utility  corporations.  Pri- 
marily they  are  privately  owned  commercial  enterprises  engaged  in  the  manufac- 
ture of  transportation  for  profit.  For  delivering  transportation  to  the  common- 
wealth railroads  have  built  up  great  manufacturing  structures  and  manned  them 
with  vast  organizations  of  men. 

In  previous  chapters  the  maintenance  of  the  manufacturing  property,  namely, 
roadway,  rolling  stock  and  subsidiary  branches,  have  been  considered.  The  opera- 
tion of  the  property  and  the  various  items  entering  into  conducting  transportation 
will  be  discussed  in  this  chapter  of  the  series. 

Conducting  transportation  is  the  largest  of  the  main  divisions  of  expenses, 
absorbing  more  than  one-half  of  the  total  expense  of  operation.  As  outlined  in  a 
previous  chapter,  the  ratio  of  conducting  transportation  to  total  expense  has  been 
decreasing  during  the  past  decade,  while  maintenance  of  property  has  increased  in 
similar  proportion.  Analogy  w^as  drawn  between  improved  transportation  facilities 
and  lower  costs  of  operation.  That  a  relation  on  this  basis  does  exist  is  quite  clearly 
shown  in  Fig.  49. 

The  relative  proportion  of  conducting  transportation  and  maintenance  of  prop- 
erty to  total  operating  expense  for  the  years  1901  and  1910,  with  the  per  cent,  in- 
crease and  decrease  in  the  latter  over  the  former  year,  is  as  follows : 


1901 


Conducting   Transportation...     54.9% 
Maintenance  of  Property 40 . 


1910 

Increase 

Decrease 

53.3% 

1.6%, 

43.7% 

2.6% 

Referring  to  Fig.  49,  it  is  observed  that  the  ratio  of  conducting  transportation 
to  total  operating  expense  has  decreased  on  an  average  for  the  ten-year  period  of 
nearly  0.2  per  cent,  per  year.  An  average  ratio  line  is  added  to  the  chart  to  show 
this. 

The  accompanying  table,  illustrated  in  Fig.  50,  shows  the  wide  variation  in 
this  ratio  among  the  leading  railroads  of  the  country  for  the  year  1911. 

The  extremes  are  the  Louisville  &  Nashville  and  the  Chesapeake  &  Ohio,  each 
with  a  ratio  of  45.7  per  cent.,  and  the  Boston  &  Maine  with  a  ratio  of  60.4  per  cent. 

Unlike  the  maintenance  accounts  there  is  a  direct  relation  between  transporta- 
tion expenses  and  the  amount  of  business  handled.  The  maintenance  of  way  and 
structures  expenses  can  be  reduced  for  a  limited  period  irrespective  of  the  business 
handled ;  the  renewals  of  ties,  rails,  ballast  or  bjidges  may  be  neglected  for  a  con- 

105 


106 


RAILROAD  OPERATING  COSTS 


!l 


siderable  length  of  time,  thougli  such  a  method  of  decreasing  expenses  will  make 
itself  very  evident  in  a  future  period,  so  that  a  comparison  of  these  expenses  must 
extend  over  a  period  of  several  years. 

Through  large  additions  of  new  power  or  rolling  stock,  the  maintenance  of 
equipment  expenses  may  be  greatly  reduced  for  a  short  time,  hence  a  comparison 
of  one  year's  maintenance  costs  may  result  in  erroneous  conclusions, 

RATIO  or n/iirfKfiAiia  orPROPERTrmD  con  duct/ m 
TR/\n6POfimr/on  ro  tot/il  opERRTm  apc/r^c. 


io 


It 


6S 


SO 


46 


COrtOifCTItlO    TRRn^PORTATIOrf. 


n/MrfTcnmciL  or  prop^rtk 


Fio.  49 


CONDUCTING  TRANSPORTATION 
Percentage  of  Transportation  Expenses  to  Operating  Expenses. 


107 


1911. 

N.  Y.  N.  H.  &H 60.0% 

B.  &  M 60.4 

N.  Y.  Central 51.4 


Penn.  R.  R 51.0 

Erie  51.0 

B.  &  0 49.3 

D.  &  H 57.4 

D.  L.  &W 49.7 

Lehigh   Valley 51.2 

Phil.  &  Read 51.2 

Ches.  &  Ohio 45.7 

Nor.  &  West 46.5 

Atl.  Coast  Line 51.6 

Scab.  Air  Line 51.3 

Southern   50 . 0 

Lou.  &  Nash 45.7 

Nash.  C.  &  St.  L 47.7 

L.  S.  &  M.  S 49.3 

Penn.  Co 51.9 

C.  C.  C.  &St.  L 54.5 


Vandalia   51 .8% 

P.  C.  C.  &St.  L 51.9 

C.  H.  &  D 58.7 

L.  E.  &  W 48.6 

P.  &  L.  E 48.9 

III.   Central 48.7 

C.  B.  &  Q 47.9 

C.  &  N.  W 

M.St.  P.  &S.  S.  M 

C.  G.  W 

C.  R.  L  &  P 

Frisco   53 . 6 

M.  K.  &T 55.5 

C.  &  A 51.7 

Union  Pac 48 . 9 

Santa  Fe  Svs 46 . 9 

Sou.  Pac.  Sys 49 . 1 

C.  M.  &St.  P 59.4 

Nor.   Pac 54.4 

Grt.  Nor 48.0 


58.2 
55.3 
53.6 
53.3 


Cost  of  Conducting  Transportation  per  1,000  Train  Miles. 

191L 


N.  Y.  N.  H.  &H $1,041 

B.  &  M 956 

N.  Y.  Central 795 

Penn.  R.  R 1,017 

Erie 803 

B.  &  0 772 

D.  &  H 861 

D.  L.  «&  W 885 

Lehigh   Valley 874 


PhiL  &  Read.... 
Ches.  &  Ohio .... 

N.  &  W 

Atl.  Coast  Line . . 
Seab.  Air  Line. . . 

Southern   

Lou.  &  Nash 

Nash.  C.  &  St.  L. 
L.  S.  &M.  S.... 

Penn.  Co 

C.  C.  C.  &  St.  L.. 


882 
674 
699 
623 
641 
634 
626 
613 
867 
819 
775 


Vandalia   $671 

P.  C.  C.  &St.  L 755 

C.  H.  &  D 835 

L.  E.  &  W 664 

P.  &L.  E 1,237 

111.   Central 681 

C.  B.  &  Q 820 

C.  «S;N.  W 803 

M.  St.  P.  &  S.  S.  M 718 

C.  G.  W 803 

C.  R.  L  i&P 743 

Frisco  685 

M.  K.  &  T 782 

C.  &  A 741 

Union  Pac 745 

Santa  Fe  Sys 778 

Sou.  Pac.  Sys 914 

C.  M.  &  St.  P 856 

Nor.  Pac 991 

Grt.  Nor 827 


II  •  ^1 


108 


RAILROAD  OPERATING  COSTS 


CONDUCTIxVG  TRANSPORTATION 


109 


If 


F£f?cmmGt  or  m/rsro/^rAT/m  fx/mjfs 

TO  orr/?/\T/rf6  2sr/r/xsf J. 


/9//. 


nrnti.  nt-ti, 

3.9:0. 
leAf/a^  VAl. 

ATI.  ra/isr/y. 
zo^jP'/yAs/f 

//AJ/Y.Cif^SU. 

F^rrr/A.  CO, 

CCCJl^SU. 
/Ar/DAl/A . 

j^ccjtsri. 
cH^a 

///.  cf'/yr 
cg:/r.p/ 

c.ajy/: 

r/?/sco. 

a  ^  A 

(//y/o/r  /"AC. 

SA/YTA  FfSrS. 

soa/'ACsrs. 

/YO/r./'AC. 


yo 


€0 


TO 


Fig.  60 


COST  or  cofiDucwo  TmnspomTm 

fbr  1000  Trm  M/ts. 


nrc/^/rr 
renrfAH^. 

3XrO. 

r/Y/lAJt/r^AD 
M£S3<0WO. 

ATI.  COAST  1/ 
.S^AdA/Zf  Z/ 
30l/T/i£F^n 
IOO.J^//AS^. 
//ASHCg'^ri. 

f^/r/YA.  CO. 

ccc^sri. 

yAYYOAl/A . 
PCC^STL. 

C/iJi-D. 
/LL.ce/iT. 

c.B.^a, 
c.^/r.kY. 
nsr/^^5.sn 

C.a.hY. 

r/r/sco. 

C.^tA, 
CZ/Y/O/Y  Y'AC 

sAYYTA  fesrs, 
5oaFAC.  srs. 

cn^ST/' 
/YO/^,  rAC. 
CiYir  /YOYO, 

POi.lA/f'5,  -  O 


m. 


^00 


^00 


600 


soo 


/ooo 


/20O 


jioo 


^ao 


Fio.  61 


600 


aoo 


/ffOO 


/^oo 


^^"  RAILROAD  OPERATING  COSTS 

Not  so  with  transportation  expenses,  as  these  are  in  direct  relation  to  the 
amount  of  business  liandled.  The  usual  method  employed  in  comparing  cost  of  con- 
dnctmg  transportation  is  per  train  mile.  Costs  on  this  basis  for  the  same  repre- 
sentative roads  previously  illustrated  are  shown  in  Fig.  51  and  accompanying  table 
for  the  year  1911.  r     j     & 

These  figures  show  a  variation  from  $623  per  1,000  train  miles  on  the  Atlantic 
Coast  Line  to  $1,237  on  the  Pittsburg  &  Lake  Erie,  a  difference  of  99  per  cent 

-bor  the  purpose  of  analysis,  the  principal  items  of  expense  in  conducting  trans- 
portation are  shown  in  the  average  per  cent,  of  total  in  Fig.  52,  as  follows : 

Enginemen,  Yard  and  Trainmen 34 cr 

Locomotive   Fuel pt 

Station  Men  and  Dispatching ' p 

Claims,  Damages  and  Miscellaneous  Expense ^  *  *  11 

Engine  House,  Engine  Supplies  and  PJxpenses 6 

Train  Supplies  and  Expenses ^ 

Supervision    

o 

Careful  analysis  of  these  expenses  discloses  many  items  that  are  not  dependent 
upon  the  discretion  of  the  management  and  consequently  any  deductions  of  the  per- 
formance  on  the  train  mile  basis  for  the  same  railroad  during  different  period^  or 
among  various  railroads  for  the  same  period,  may  be  unfair,  as  each  item  of  this 
expense  must  be  given  separate  study. 

The  wages  of  yardmen,  trainmen  and  enginemen  constitute  approximately  34 
per  cent,  of  the  total,  while  the  wages  of  station  employes  and  train  dispatchers  are 
approximately  17  per  cent.,  so  that  these  expenses,  which  are  essentially  labor  items 
make  up  50  per  cent,  of  the  total  cost  of  conducting  transportation. 

The  cost  of  conducting  transportation  is  more  than  one-half  the  operating  ex- 
penses and  the  wages  paid  the  above  classes  of  labor  approximates  25  per  cent,  of 
the  total  operating  expenses. 

As  the  earnings  of  these  employes  are  dependent  upon  the  hours  occupied  in 
performance  of  their  work,  rather  than  upon  the  volume  of  business,  a  25  per  cent 
increase  in  their  wages  will  effect  a  6  per  cent,  increase  in  the  total  operating  ex- 
penses. ° 

It  is  therefore  logical  to  say  that  one-half  the  cost  of  conducting  transporta- 
tion, or  one-fourth  the  total  operating  expenses,  is  independent  of  the  skill  of  the 
individual  or  the  administrative  ability  of  the  supervising  officer. 

Locomotive  fuel,  the  largest  single  item  of  expense  in  railroad  operation  is  of 
such  importance  that  the  following  and  concluding  chapter  of  this  treatise  is  devoted 
entirely  to  this  one  item  and  need  only  be  mentioned  at  this  time. 

The  remaining  24  per  cent,  of  the  total  cost  of  conducting  transportation  is 
divided  as  follows: 

Claims,  Damages  and  Miscellaneous  Expenses 11% 

Engine  House  Expenses  and  Engine  Supplies q 

Train  Supplies  and  Expenses 4 

Supervision    « 


CONDUCTING  TRANSPOETATIOX 


111 


DIVISION  or  CONDUCTING    TRANSPORTATION 

exPEiNSts  ON  large:  roads 


supe:n\/f3/0N    3  0% 


ENGtNE,  6UPPUE5 

CLAIMS^  DAMAGES 
€s  M/SCL .  EXPENSES 

ST^T/OA//HEN   £Jf 

DASP^yc/fERs.  tro% 


LOCOA/IOTI\^E  rUEL. 
ZSO% 

ENQA^EMBN  fSO% 
YARO  ^TRAJNMCN 
/9.0%-^  TOTAL  3AM 


Fig.  52 


112 


RAILROAD  OPERATING  COSTS 


The  lirst  item,  claims,  etc.,  while  aggregating  11  per  cent,  of  the  total,  includes 
eighteen  miscellaneous  items  so  diversified  as  to  afford  no  adequate  unit  of  com- 
parison, while  the  last  item,  that  of  supervision,  is  largely  a  fixed  charge  having  no 
direct  relation  to  the  business  handled. 

Engine  house  expenses,  covering  the  attendance  at  terminals  and  the  cost  of 
lubricants  and  supplies  furnished  locomotives,  absorb  6  per  cent,  of  the  total  cost  of 
conducting  transportation,  while  the  expenses  incidental  to  the  handling  and  sup- 
plying of  trains  at  terminals  included  in  the  item  "train  supplies  and  expenses"  con- 
sume 4  per  cent,  of  the  total. 

Engine  house  expenses,  locomotive  lubricants  and  supplies  are  dependent  upon 
the  size  of  and  service  rendered  by  the  locomotives,  and  consequently  the  locomotive 
work  unit  or  tractive  mile  is  the  equable  basis  for  these  items. 

While  these  expenses  are  of  minor  importance  in  relation  to  the  total  cost  of 
operation,  considerable  attention  is  directed  by  railroad  operating  officials,  particu- 
larly mechanical  officers,  in  the  detail  performance  of  these  items,  and  statements 
and  charts,  Figs.  53,  54  and  55,  showing  the  costs  on  a  tractive  mile  basis  are  shown. 

Train  supplies  and  expenses  are  not  dependent  on  the  number  of  train  miles, 
but  upon  the  car  mileage,  but  inasmuch  as  the  expense  of  passenger  equipment  is 
greater  than  that  of  freight  equipment,  the  comparison  should  be  upon  the  basis  of 
passenger  car  miles  and  freight  car  miles  separately. 

Unfortunately,  the  records  of  the  Interstate  Commerce  Commission  do  not  pro- 
vide for  the  division  of  these  expenses  as  between  pa.«senger  and  freight,  so  that 
satisfactory  comparisons  cannot  be  made  at  tliis  tinte. 

Engine  House  Expense  per  Tractive  Mile. 


1911. 


N.  Y.  N.  H.  &H $l.or 


■^3 


B.  &  M 

N.  Y.  Central... 
Penn.  R.  R 

B.  &  0 

Erie   

D.  &  H 

D.  L.  &  W 

Lehigh  Valley. .. 
P.  &  R 

C.  R.  R.  of  N.  J. 

C.  &  0 

N.  &  W 

Atl.  Coast  Line. 
Seab.  Air  Line. . 
Southern  Ry. . . . 

L.  &N.... 

Mob.  &  Ohio. . . . 
Nash.  C.  &  St.  L. 
L.  S.  &M.  S 


1.06 
.85 
.79 
.57 
1.08 
1.15 
84 
.78 
.97 
.88 
.52 
.70 
.74 
.42 
.62 
.65 
.99 
.62 
.69 


P.  C.  C.  &St.  L $0.i 

Mich,  Cent 68 

C.  H.  &D 90 

C.  C.  C.  &St.  L 76 

Vandalia 99 

111.  Cent 1 .  13 

C.  B.  &  Q 95 

C.  R.  L&  P 88 

C.&N.  W 1.22 

Frisco 72 

M.K.&T 1.20 

K.  C.  Sou 94 

C.  G.  W 1.10 

C.  St.  P.  M.  &  O 1.18 

M.  St.  P.  &  S.  S.  M 99 

Union  Pac 99 

C.  M.  &  St.  P 1.40 

Santa  Fe  Sys 96 

Sou.  Pac.  Sys 93 

Xor.   Pac 91 


CONDUCTING  TRANSPORTATION 
Traffic  Expense  and  General  Expense. 


113 


The  traffic  expenses,  together  with  the  general  expenses  of  a  railroad,  constitute 
approximately  7  per  cent,  of  the  total  operating  expenses,  and  are  largely  fixed 
charges. 

Inasmuch  as  they  bear  no  direct  relation  to  the  train  mileage,  engine  mileage, 
car  mileage,  traffic  density,  geographical  or  topographical  conditions,  these  expenses 
are  not  dependent  upon  the  discretion  of  the  operating  officials  and  any  study  with 
reference  to  a  comparative  unit  will  be  of  doubtful  value  and  is  not  given 
consideration. 

/^rJracfyye  /7//e . 


CCtlT-S.-O         /O        ZO        30 


/9//. 

jfo      so      60      70      ao      90      »o      I/O      ixo     /so      f*o 


BJcO. 
£/^/£. 
DJcH 

C/^.or/Yc/. 
C.S^O. 

ATLCMSTLl. 

LO(/.^/r/fSAt 
nOBJfOH/0. 

ISS/7J 
FCCXSTl. 

/7/rn  CB/iT 

C.HXcD 

CCCgrSTl 

//{fiDfll/ZI. 

/a  c£/iT 

ACS  (PC/. 

cay/ 

C5Te/7^l'0. 

nsrFX-ssv?. 
c//r/m/=yic. 

s/^rrmrfsrs. 
sour/fcsK^. 

/YOR  F/iC. 

cenrs. 


/OO      //»      /«V9      ASO      Ma 


Fig.  53 


II  ' 


114 


RAILROAD  OPERATING  COSTS 

Locomotive  Lubricants  per  Tractive  Mile. 

1911. 


Cents 

N.  Y.  N.  H.  &H 13.9 

B.  &  M 7.3 

N.  Y.  Central 8.5 

Erie  9.3 

Penna.  R.  R 7.2 

B.  &  0 6.4 

D.  &  H 10.8 

D.  L.  &  W 8.9 

Lehigh  Valley 7.7 

C.  R.  R.  of  N.  J 10.7 

Phil.  &  Read 8.9 

N.&  W 6.0 

Ches.  &  Ohio 7.0 

Atl.  Coast  Line 11.3 

Seab.  Air  Line 7.7 

Cent,  of  Geo 5.7 

Southern   5.4 

Lou.  &  Nash 8.5 

Nash.  C.  &  St.  L 10.6 

111.  Cent 10.9 


Cents 

L.  S.  «&  M.  S 7.1 

Penn,  Co 7.9 

P.  C.  C.  &St.  L 8.1 

Mich.  Cent 9.5 

Vandalia   9.2 

C.  C.  C.  &St.  L 8.6 

C.  &  A 8.2 

Wabash   10.0 

C.  B.  &Q 7.2 

C.&N.  W 11.9 

C.  M.  &St.  P 10.6 

C.  R.  I.  &P 8.6 

Frisco   8.8 

M.  K.  &  T 11.1 

Mo.  Pac 7.0 

D.  &R.  G 12.1 

Santa  Fe  Sys 10.0 

Union  Pac 6.3 

Sou.  Pac.  Sys 8.7 

Grt.  Nor 9.3 


IjOcomotive  Supplies  per  Tractive  Mile. 

1911. 


Cents 

N.  Y.  N.  H.&H 13.5 

B.  &  M 8.2 

N.  Y.  Central 6.6 

Erie   8.9 

Penn.  R.  R 9.2 

B.  &  0 9.2 

D.  &  H 8.2 

D.  L.  &  W 11.0 

Lehigh   Valley 7.3 

C.  R.  R.  of  N.  J 10.2 

Phil.  &  Read 13.0 

N.  &  W 7.5 

Ches.  &  Ohio 11.0 

Atl.  Coast  Line 8.4 

Seab.  Air  Line 8.6 

Cent,  of  Geo 6.4 

Southern    6.1 

Lou.  &  Nash 10 . 5 

Nash.  C.  &  St.  L 6.8 

111.  Central 8.5 


Cents 
6.7 
7.3 


L.  S.  &M.  S 

Penn.  Co 

P.  C.  C.  &  St.  L 10.4 

Mich.    Cent 5.9 

Vandalia   10.1 

C.  C.  C.  &  St.  L 11.4 

C.  &  A 9.2 

Wabash    8.6 

C.  B.  &  Q 9.1 

C.  &  N.  W 9.9 

C.  M.  &  St.  P 13.8 

C.  R.  I.  &  P 7.5 

Frisco   10.1 

M.K.&T 8.9 

Mo.  Pac 12.1 

D.&R.G 17.8 

Santa  Fe  Sys 5.6 

Union  Pac 9.4 

Sou.  Pac.  Sys 11.1 

Grt.  Nor 8.0 


CONDUCTING  TRANSPORTATION 

LOCO/IOWf  L/jm/CA/iT3. 
PerTracWe/li/e. 

m 


115 


cerfTJ.-o 

B.&n 

/yrce/yr. 

eRfe. 

3.^0 

UM/^tf  mi 
c/^Ror/Yc/. 

CHE3.S0H/0. 
ATL  COAST  a. 
SEAB.  AIR  U 

ce/iTOF^Ea 

50C/T/yE/?/Y. 

LOU.  ^T/AS/i. 

nASHCJrSU 

/IL.CE/yT 

l.S.ScMS 

F^mA.CO. 

f^CCSrSTL 

AT/C^.Ct/YT 

/A/iDAL/A. 

ccc^sri. 

CJi-A'. 
H^ABASTi. 

csjca 

C  AT^^TP. 
/7^/SCO. 
ATO.  PAC. 

sA/YM/rsrs 

(////0/Y  FAC 
SOUPACsSKS. 


Fig.  54 


116 


EAILROAD  OPERATING  COSTS 


m 


Fuel 


BJc/7. 

3.^0. 

c/^/i.oF/y.c/. 
c/Yts.  Jto/z/a 

ATI.  COASri/. 
^fASA//€l/. 

mS/i.CJ^STJL. 

///  cerYZ 
/r.c  xrsri . 

yA/YMl/A . 
CCC^STL 
C.X^A. 
mBASM. 

r/i/sco. 

A70.FAC. 

SA/YTA/TSrS 
6//y/0/Y  FAC, 
SOaFAC.SKS. 

certrs-  o 


CHAPTER  YIII. 


The  fuel  consumed  by  locomotives  on  the  railroads  of  the  United  States  during 
the  fiscal  year  1911  totaled  132,000,000  tons,  which  is  equal  to  one-fifth  of  the 
entire  annual  output  of  the  coal  mines  of  the  country.  This  item  required  an 
expenditure  of  about  $240,000,000,  or  12  per  cent,  of  the  total  operating  expenses 
of  the  railroads,  and  amounted  to  62  per  cent,  of  the  expenditure  for  maintenance 
of  way  and  structures  and  52  per  cent,  of  the  expenditures  for  maintenance  of 
equipment  during  that  period. 

During  the  past  ten  years  the  value  of  fuel  used  on  locomotives  by  the  rail- 
roads of  the  United  States  has  steadily  increased,  and  with  the  greater  use  of  fuel 
for  industrial  purposes,  the  larger  expense  of  mining,  it  is  evident  that  the  cost 
of  this  item  of  railroad  operation  must  continue  to  increase  rather  than  to  diminish 
in  the  future.  This  is  not  only  a  matter  of  immense  moment  to  the  railways,  but 
it  is  an  important  economic  factor  which  justifies  closer  study  of  conservationists 
for  the  purpose  of  determining  whether  there  may  be  any  method  by  which  such 
a  vast  consumption  may  be  diminished. 

The  importance  of  this  was  sufficiently  recognized  by  the  United  States  Gov- 
ernment, and  in  1906  arrangements  were  made  to  have  Dr.  W.  F.  M.  Goss  conduct 
a  series  of  tests  for  the  purpose  of  determining  the  best  methods  for  utilization  of 
fuel  in  locomotive  practice.  These  tests  were  conducted  with  a  single  expansion 
locomotive  equipped  with  a  superheater,  and  the  results  were  given  to  the  public 
in  a  bulletin  issued  by  the  United  States  Geological  Survey. 

As  a  result  of  these  tests.  Dr.  Goss  has  demonstrated  that  under  ideal  conditions, 
of  all  the  available  heat  in  the  fuel  consumed  by  a  locomotive,  57  per  cent,  is 
absorbed  by  the  boiler  and  superheater  and  the  other  43  per  cent,  is  distributed  in 
heat  losses  as  follows: 

Products  of  combustion 19% 

Imperfect  combustion 17 

External  radiation  and  leaking 7 

In  drawing  the  general  conclusion  as  to  the  result  of  these  tests,  Dr.  Goss 
states  as  follows : 

"It  is  apparent  that  the  utilization  of  fuel  in  locomotive  service  is  a  problem 
of  so  large  a  proportion  that  if  even  a  small  sa^^ng  could  be  made  by  all  or  a 
large  proportion  of  the  locomotives  of  the  country,  it  would  constitute  an  im- 
portant factor  in  the  conservation  of  the  nation's  fuel  supply. 

117 


118  RAILROAD  OPERATIXG  COSTS 

'^Locomotive  boilers  are  handicapped  by  tlie  requirement  that  the  boiler 
itself  and  all  of  its  appurtenances  must  come  within  rigidly  defined  limits  of 
space,  and  by  the  fact  that  they  are  forced  to  work  at  a  very  high  rate  of  power. 

"Notwithstanding  this  handicap,  it  is  apparent  that  the  zone  of  practical 
improvement  which  lies  between  present  day  results  and  those  which  may 
reasonably  be  regarded  as  obtainable  is  not  so  wide  as  to  make  future  progress 
rapid  or  easy. 

"Material  improvement  is  less  likely  to  come  in  large  measures  as  the 
result  of  revolutionary  changes  than  as  a  series  of  relatively  small  savings  in 
the  several  items  to  which  attention  has  been  called." 

From  the  foregoing  it  is  apparent  that  fuel  economy  must  be  secured  in  the 
following : 

Reduction  in  losses  due  to  imperfect  combustion. 
Greater  utilization  of  heat  in  escaping  gases. 
Increased  evaporation  per  pound  of  coal. 
Improved  economy  in  steam  consumption. 

For  a  number  of  years  the  Railway  Master  Mechanics  Association  have  been 
making  exhaustive  tests  for  determining  the  best  design  of  draft  appliances  and 
of  arches  in  the  fireboxes,  for  the  purpose  of  reducing  the  losses  due  to  imperfect 
combustion. 

Inasmuch  as  the  locomotive  used  by  Dr.  Goss  in  his  tests  was  equipped  with 
a  very  efficient  superheater,  it  is  doubtful  if  much  additional  economy  in  the  second 
item  can  be  expected  through  improvements,  though  recent  designs  of  locomotives 
have  feed-water  heating  devices  for  the  purpose  of  using  a  portion  of  the  heat  now 
lost  in  escaping  gases. 

Effort  is  also  being  made  to  secure  better  circulation  in  the  boiler  and  thus 
increase  the  evaporating  efficiency  of  the  coal. 

The  necessity  of  adequate  supervision  of  this  important  item  of  operating 
expenses  has  also  been  recognized,  and  many  railroads  have  well  organized  fuel 
departments  under  capable  managers  who  direct  the  handling  of  fuel  from  the 
loading  at  the  mine  to  the  delivery  to  the  locomotive.  This  has  served  to  eliminate 
losses  in  transit  and  delivery  and  secured  greater  accuracy  in  records  of  disposition 
and  disbursements. 

Some  railroad  operating  officials  have  extended  the  jurisdiction  of  their  fuel 
supervisors  to  include  the  education  of  the  enginemen  in  the  best  methods  of  firing, 
including  the  installation  of  suitable  records  of  fuel  performance.  This  has  been 
a  well-directed  step,  for  vast  improvement  can  be  accomplished  by  the  adoption 
of  suitable  accounting  methods,  whereby  each  engineman  is  charged  with  the 
amount  of  fuel  actually  taken  and  the  establishment  of  proper  standards  so  as  to 
permit  the  performance  of  each  individual  to  be  accurately  determined. 

With  such  data  available  any  divergence  from  standard  performance  can  be 
readily  detected,  and  such  corrections  made  as  seem  necessary  after  thorough  in- 
vestigation. Chemical  analysis  of  the  various  grades  of  coal  used  often  confirms 
the  deductions  from  these  investigations,  resulting  in  closer  inspection  of  fuel 


FUEL 


119 


purchased.  Modification  of  design  in  the  locomotive  appurtenances  pertaining  to 
combustion  is  often  found  to  be  advisable,  further  indicating  the  value  of  accurate 
records,  proper  standards  and  efficient  administration. 

While  all  of  these  methods  have  undoubtedly  served  to  secure  more  economical 
fuel  performance,  it  would  appear  that  the  most  important  item,  viz.,  improved 
steam  consumption,  has  been  overlooked.  Inasmuch  a;?  5T  per  cent,  of  the  available 
heat  in  the  fuel  is  absorbed  by  the  boiler  and  superheater,  the  greatest  net  economy 
can  be  effected  by  developing  more  horsepower  per  pound  of  steam. 

The  thermal  efficiency  of  the  single  expansion  locomotive,  in  actual  service, 
averages  from  3  to  4  per  cent.,  and  with  the  compound  locomotive,  equipped  with 
superheaters  and  feed-water  heaters,  this  figure  is  raised  to  5  or  6  per  cent.  The 
thermal  efficiency  of  the  more  refined  marine  engine  averages  from  12  to  15  per 
cent.,  and  recent  developments  of  a  superheated  steam  unit  in  Germany  have 
resulted  in  securing  a  thermal  efficiency  of  20  per  cent. 

If  the  thermal  efficiency  of  the  steam  locomotive  was  increased  to  10  per  cent., 
the  saving  in  fuel  would  amount  to  over  $120,000,000  annually,  which  is  equal  to 
6  per  cent,  on  $2,000,000,000.  Notwithstanding  this,  there  has  been  no  con- 
centrated effort  by  railway  mechanical  officials  to  design  a  locomotive  which  would 
compare  favorably  with  results  obtained  in  marine  practice  or  even  in  European 
locomotive  practice. 

In  the  locomotive  tests  conducted  by  the  Pennsylvania  Railroad  at  St.  Louis 
in  1904,  it  was  demonstrated  that  the  coal  consumption  per  dynamometer  horse- 
power was  3.5  to  5  pounds  for  single  expansion  locomotives  and  2.0  to  3.6  pounds 
for  compound  locomotives.  The  average  fuel  consumption  of  compounds  was 
approximately  30  per  cent,  less  than  single  expansion  locomotives,  which  figures 
were  later  accepted  by  the  Railway  Master  Mechanics  Association. 

In  view  of  this,  it  is  somewhat  surprising,  with  locomotive  fuel  the  largest 
single  item  of  expense,  to  find  from  the  records  of  the  Interstate  Commerce  Com- 
mission that  compound  locomotives  constitute  only  7  per  cent,  of  the  total  tractive 
force  of  the  railroads  in  the  country.  Only  four  railroads  have  over  20  per  cent, 
of  their  tractive  force  in  compound  locomotives  and  but  eight  others  have  over 
10  per  cent.,  while  twenty-five  of  the  leading  railroads  have  no  compound  loco- 
motives of  any  design  in  service. 

Many  conservative  railroad  mechanical  officials  have,  however,  refused  to  con- 
sider the  question  of  compound  locomotives,  on  the  theory  that  the  increased  repair 
costs  due  to  the  more  intricate  machinery  make  it  unwise  to  use  compound  loco- 
motives, since  the  saving  in  fuel  would  be  more  than  offset  by  the  increased  main- 
tenance costs  and  the  increased  time  out  of  service. 

When  it  is  considered  that  on  some  railroads  the  annual  expenditure  for  loco- 
motive fuel  is  twice  and  even  three  times  the  expenditure  for  locomotive  main- 
tenance, the  matter  should  be  thoroughly  investigated  before  a  decision  is  reached 
that  compound  locomotives  are  too  expensive  to  maintain  to  be  considered  as  power 
units. 

In  view  of  the  absence  of  a  satisfactory  basis  for  comparing  performance  and 
costs,  it  is  extremely  doubtful  if  the  situation  has  been  thoroughly  analyzed.  The 
usual  method  of  comparison  has  been  on  the  basis  of  the  cost  per  locomotive  mile, 


120 


RAILROAD  OPERATING  COSTS 

COJT  OF  ft/£l  /29P  £/f6//f£:  /Y/IE 

c£»r<s-  2        4        $        8       »       a 

I         I         I 

£ASr£Rtf  MAD5. 


FUEL 


131 


fS/f/tCO. 


cBs-a . 


CA/dF. 


i/f3TEF/f  ^OAOS. 


esnxj—  2 


*  g 

Flo.  56 


• 


/^ 


and  the  writer  has  made  an  extensive  study  of  the  matter  in  order  to  determine  the 
proper  unit  for  comparative  purposes. 

The  result  of  this  study,  which  is  given  in  the  following  pages,  illustrates  how 
easily  erroneous  conclusions  may  be  drawn  of  locomotive  performance  in  the  ab- 
sence of  satisfactory  comparative  units,  and  senses  to  demonstrate  tliat  the  main- 
tenance costs  and  fuel  consumption  of  compound  and  single  expansion  locomotives 
have  not  been  given  the  consideration  they  warrant. 

From  the  data  compiled  by  the  Interstate  Commerce  Commission  for  their  use 
at  the  recent  rate  hearing,  the  cost  of  fuel  per  locomotive  mile  has  been  deter- 
mined for  six  eastern  and  six  western  roads  for  the  five-year  periods  ending  1905 
and  1910,  which  information,  shown  graphically  in  Fig.  56,  is  as  follows: 


Cost  of  Fuel  Per  Engine  Mile. 


Average  5  Yrs. 

Eastern  Roads  Ending  1905 

Penna.  Railroad 9.5  cents 

Lehigh  Valley 11.5 

Erie 9.7 

Wabash  7.4 

N.  Y.  Central 7.9 

D.L.  &W 6.7 

Western  Roads 

A.  T.  &  S.  F 10.1  cents 

C.  M.  «&St.  P 10.0       • 

C.  &  A 7.0 

C.  B.  &  Q 9.5 

C.  &  N.  W 9.1 

C.  R.  I&P 10.4 


Comparing  the  cost  of  fuel  per  engine  mile  on  the  roads  mentioned  for  the 
five-year  period  ending  1910,  with  the  five-year  period  ending  1905,  a  general  in- 
crease is  observed  which,  however,  varies  considerably  on  different  roads,  as  shown 
in  Fig.  57. 

The  cost  of  fuel  per  locomotive  mile  or  per  locomotive  only  serves  as  an  illus- 
tration of  expense  on  the  various  railroads  and  cannot  be  used  for  comparative 
purposes,  since  a  variation  in  the  price  per  ton,  variation  in  the  size  of  locomotives, 
change  in  operating  or  traffic  conditions  have  such  influence  as  to  render  it  value- 
less as  a  basis  of  comparing  performance. 

For  the  purpose  of  illustrating  this  more  thoroughly,  the  cost  of  fuel  per 
tractive  mile  (average  tractive  force  in  pounds  multiplied  by  total  engine  miles 
and  divided  by  1,000,000)  is  shown  in  the  following  table,  and  illustrated  in  Fig. 
58,  for  the  same  railroads  for  the  five  years  ending  1910. 


Average 

5  Yrs. 

Per  Cent 

Ending 

1910 

Increase 

10.5  cents 

10.5 

13.7 

19.1 

12.0 

23.7 

9.9 

33.8 

10.7 

35.4 

9.4 

40.3 

11.6  cents 

14.8 

12.5 

25.0 

9.3 

32.8 

13.1 

37.9 

12.6 

38.4 

14.4 

38.5 

^ns 


122 


RAILROAD  OPERATING  COSTS 


COST  or  rm  Pf/?  fz/om  n/iE. 

fhrcent  /ncrease  S  }iar  Fer/od  fncf/ng /9/0 
Oifer  J>eor/%r/bi/  Ending /905. 


/C  20  » 

I  I 


ft/r///?/?. 

Miosis// 


40 


so 


CdrA. 


WE^nSf//  /fO/\D5. 


m 


20 

Fio.  67 


30 


40 


FUEL 


123 


The  cost  of  locomotive  fuel  per  tractive  mile  on  the  roads  mentioned  for  the 
five-year  period  1910,  when  compared  with  the  cost  in  the  previous  four-year 

Cost  of  Fuel 
Eastern  Roads  Per  Tractive  Mile 

Erie $2.16 

Penna.  Railroad 3 .  23 

K  Y.  Central 3.75 

D.  L.  «&  W 3.7G 

Wabash  4.42 

I^ehigh  Valley 5.10 

Western  Roads 

C.  &  A $3.37 

C.B.&  Q 3.87 

A.  T.  &S.  F 5.52 

C.  R.  I&P 5.74 

C.&N.  W 6.01 

C.  M.  &  St.  P 6.32 

period,  does  not  show  a  general  increase  as  on  the  locomotive  mile  basis.    Fig.  59 
and  the  accompanying  table  show  this  clearly. 


Decrease 
10.0% 


Eastern  Roads  Increase 

Penna.  Railroad 

Lehigh  Valley 1.6% 

Wabash  8.4 

N.  Y.  Central 10.0 

Erie 25.6 

D.  L.&W 31.5 

Western  Roads 

A.  T.  &S.  F 

C.  R.  I.  k  P.  (Avg.  3  yrs.  ending  1905) 

C.  M.  «fe  St.  P 3.1% 

C.  &  A 4.7 

C.  B.  &  Q 8.2 

C.  &  N.  W 10.3 


The  Pennsylvania  Railroad  shows  a  marked  decrease  of  10  per  cent,  in  the  cost 
of  locomotive  fuel  per  tractive  mile  for  the  five-year  period  ending  1910,  as  com- 
pared with  the  previous  four-year  period,  while  the  D.,  L.  &  W.  shows  an  increase 
of  31.5  per  cent.  Of  the  western  roads  the  Atchison  decreased  10  per  cent,  and 
the  C.  &  N.  W.  increased  10.3  per  cent,  during  the  same  comparative  periods. 


10.4% 
0.7 


124 


RAILROAD  OPERATING  COSTS 


C03T  or  FUEL  PER  WORK  UNIT 
A  ve  raqz  S  /c  or  Pzriod  Endinq  1^10 


N.YCENT 

WABASH 
LV. 


Ce^A. 
AT.Cf^jr 
C.B.C^Q 
CRLBP. 

C.fsH  W 


A\STEk\N  X?0>  i 


X?0>  D^ 


WZ5T£fA/R0/D^ 


St 

Fig.  58 


COST  OFFUa  f^R  k/Of^KUm. 
Percent  /ncrease  or  Decrease  for  J  )^or  Per/od 

£n(/inf  /9/0  Com/?an?</  ty/Wf  4)^ar  fkr/ac/ &k///7f  Mf. 


/rrce/fr 
Dim. 


D£Cffe/1S£  t\ 

men 

I  I  I 


crr.»^^p. 

CSJira. 

Cd-rfiv. 


//vcfffMeX 

20  30 


IY£5T£R/r  ffom. 


/o 


/» 


20 


*A^erofe  ofJY^Kj  fn^iitf  I90S. 


no.  59 


126 


RAILROAD  OPERATING  COSTS 


FUEL 


127 


!•  %\ 


To  further  illustrate  what  erroneous  conclusions  may  be  drawn  when  the  cost 
of  fuel  alone  is  used,  the  following  statement  is  given  of  prices  paid  on  various 
railroads  per  ton  of  fuel  as  shown  on  the  Interstate  Commerce  Commission  records 
for  1910. 

Eastern  Roads  Cogt  Per  Ton 

N.Y.  N.  H.&H $2.93 

N.  Y.  Central i .  70 

Lehigh  Valley iqq 

D.  L.  &  W. 1  *43 

Erie   1.37 

Penna.  Railroad 1 .  35 

Southern  Railway iiq 

^-  &N 1.12 

Western  Roads 

Northern  Pacific $2 .  76 

Great  Northern 2.56 

C.  M.  &  St.  P 2 .24 

C.  &  N.  W 1  99 

C.  R.L&P i^gg 

Union  Pacific 1 .  74 

A.  T.  &  S.  F 1.79 

The  cost  of  fuel  for  locomotives  is  largely  dependent  upon  the  geographical 
location  of  the  railroad.  Railroads  having  mileage  within  coal  mining  districts  pay 
considerably  less  for  the  fuel  than  those  located  at  a  distance  and,  consequently,  the 
comparisons  cannot  be  on  a  cost  basis. 

An  example  of  the  extremes  in  locomotive  fuel  costs  is  furnished  by  the  Northern 
Pacific  and  the  B.  &  0.  for  the  year  1910,  as  follows: 


Tons  of  Fuel  Per  Tractive  Mile. 


Looomotive  Miles 

Baltimore  &  Ohio 64,316,068 

Northern   Pacific 35,810,364 


Cost  of  Fuel 

$5,406,759 
7,690,841 


In  other  words,  the  Northern  Pacific,  with  44.3  per  cent,  less  locomotive  miles, 
expended  42.3  per  cent,  more  for  fuel  than  the  B.  &  0. 

From  the  foregoing  data  it  is  evident  that  comparisons  of  fuel  performance 
between  different  periods  or  railroads  must  be  on  the  quantity  consumed  rather  than 
on  the  cost. 

As  the  tractive  mile  combines  the  size  of  the  locomotives  and  the  service  ren- 
dered, the  average  quantity  consumed  on  this  basis  is  of  considerable  value. 

The  following  table,  with  accompanying  charts.  Figs.  60  and  61  shows  the  tons 
of  fuel  per  tractive  mile  on  a  number  of  representative  railroads  for  the  four  years 
1908,  1909,  1910  and  1911. 


1909 

1910 

1911 

2.23 tons  ; 

2.28  tons 

2 . 28  tons 

2.14 

2.12 

2.06 

2.50 

2.59 

2.59 

3.09 

2.92 

2.87 

2.62 

2.62 

2.64 

3.08 

2.91 

2.89 

2.91 

3.04 

3.07 

3.09 

2.98 

3.14 

2.87 

2.90 

3.00 

2.87 

2.84 

2.88 

2.34 

2.49 

2.58 

2.38 

2.37 

2.54 

2.79 

2.88 

2.89 

2.14 

2.38 

2.48 

2.68 

2.65 

2.58 

2.72 

2.73 

2.71 

2.84 

2.83 

3.03 

2.63 

2.29 

2.48 

1908 

Penn  R.  R 2 .36  tons 

N.Y.  Central 2.25 

N.Y.N.  H.&H...  2.59 

Erie 3.12 

B.  &  0 2.60 

D.  &  H 2.76 

D.  L.  &W 2.98 

Lehigh  Val 3.12 

Phil.  &  Read 2.94 

C.  R.  R.  ofN.  J 2.82 

Atl.  Coast  L 2.41 

C.  &  0 2.43 

N.  &  W 2.57 

Seab.  Air  L 2.25 

Southern 2.63 

Lou.  &  Nash 2.81 

Mob.  &  Ohio 2.65 

Nash.  C.  &  St.  L. . .  2.31 


Tons  of  Fuel  Per  Tractive  Mile. 

1908                      1909                      1910  1911 

Pere  Marq 3.14  tons         2.91  tons  2.85  tons         3.05  tons 

Mich.  Cent 2.54                 2.50  2.29  2.24 

N.  Y.  C.  &  St.  L....     3.35                3.26  3.34  3.32 

C.H.«&D 3.57                 3.50  3.32  3.57 

C.  C.  C.  &  St.  L 2.61                 2.54  2.56  2.51 

Vandalia   3.01                2.96  2.98  3.11 

111.  Central 3.28                 3.26  3.24  3.22 

C.B.&Q 3.10                 3.21  3.28  3.00 

C.  «&  N.  W 3.26                 3.35  3.36  3.29 

C.  R.  L&P 2.78                2.84  2.79  2.82 

Frisco    2.79                 2.81  2.83  2.74 

M.K.&T 2.73                 2.75  2.77  2.69 

C.  «&  A 3.02                 2.96  3.02  2.92 

C.  St.  P.  M.  &  0...     2.64                 2.63  2.72  2.77 

M.  St.  P.  &S.  S.  M.     2.15                2.06  2.28  2.08 

Union  Pac 3.10                 3.15  3.17  3.24 

Santa  Fe  Sys 2.55                2.43  2.50  2.41 

Nor.  Pac 2.77                 2.72  2.65  2.69 

While  this  is  the  best  available  unit,  there  are  many  factors  which  will  modify 
the  value  of  these  comparisons,  and  no  definite  conclusions  can  be  reached  without 
a  careful  analysis  of  all  influencing  conditions. 


128 


RAILROAD  OPERATIXG  COSTS 


Torts.  -  o 


as 


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130 


RAILROAD  OPERATING  COSTS 


FUEL 


131 


n 


Locomotives  of  equal  tractive  force  will  burn  more  fuel  per  mile  run  on  heav)' 
grades  in  mountainous  districts  than  those  operating  in  level  countries.  The  quality 
of  fuel  used  will  also  influence  the  consumption  as  a  greater  quantity  of  low-grade 
fuel  will  be  required  than  of  first-class  fuel  in  developing  the  same  horse-power. 

Railroads  operating  in  the  Eastern  States  having  access  to  the  best  grade  of 
bituminous  coal,  as  the  New  York  Central,  Pennsylvania  and  Chesapeake  &  Ohio, 
should  use  less  fuel  than  western  railroads  with  similar  grades  using  sub-bituminous 
and  lignite  coals.  The  average  heat  units  per  ton  of  the  various  grades  of  fuel 
would  be  of  valuable  assistance  in  comparing  jierformance  on  fuel,  but  as  this  data 
is  not  available,  this  study  cannot  be  made  as  extensive  as  is  desirable. 

While  the  fuel  data  furnished  the  Interstate  Commerce  Commission  includes 
the  fuel  used  by  oil-burning  locomotives  reduced  to  a  coal  equivalent,  it  would 
permit  of  more  satisfactory  analysis,  if  separate  records  were  maintained  for  oil 
and  coal-burning  locomotives. 

Methods  of  operation  (viz.:  the  tonnage  and  speed  of  trains),  traffic  conditions 
and  physical  characteristics,  all  liave  substantial  influence  on  fuel  consumption  and 
no  definite  conclusions  can  be  reached  without  full  consideration  being  given  these 
factors.  Since  the  records*  of  the  Interstate  Commerce  Commission  at  present  do 
not  contain  this  information,  this  study  has  been  made  with  such  data  as  is  available. 

Railroads  traversing  the  same  general  territory  have,  as  a  rule,  the  same  oper- 
ating conditions  and  have  access  to  the  same  grade  of  fuel,  so  that  comparisons 
among  roads  similarly  situated  possess  considerable  value  on  fuel  consumption. 

The  C.  &  N.  W.  and  the  M.  St.  P.  &  S.  S.  M.  occupy  the  same  general  territory, 
handle  the  same  general  traffic  and  should  in  a  measure  use  the  same  grade  of  fuel. 
The  percentage  of  total  tractive  force  on  these  roads  divided  between  compound  and 
single  expansion  locomotives  is  as  follows : 

Compound  Single  Expansion 

C.  &N.  W loofo 

M.  St.  P.  &  S.  S.  M 38.4^0  60.8 

In  order  to  compare  the  fuel  consumption  and  locomotive  maintenance  for  as 
long  a  period  as  possible,  the  figures  have  been  taken  for  the  years  1910  and  1911. 
As  extensive  additions  were  made  to  the  mileage  operated  by  the  M.  St.  P.  &  S.  S.  M. 
in  1909,  it  is  impractical  to  include  more  tlian  the  two  years  mentioned.  The  fuel 
consumption  and  locomotive  repair  costs  per  tractive  mile  for  the  two  years,  which 
are  illustrated  in  Fig.  62,  are  as  follows : 

Tons  Fuel  Per 
Tractive  Mile 

3.33  $2.82 


Loco.  Repairs  Per 
Tractive  Mile 


C.  &N.  W 

M.  St.  P.  &S.  S.  M 


From  the  above  it  is  apparent  that  locomotive  maintenance  on  the  M.  St.  P.  & 
S.  S.  M.  was  10  per  cent,  greater  and  the  fuel  consumption  was  35  per  cent,  less  than 
on  the  C.  &  N.  W. 

Considerable  variation  is  in  evidence  in  the  fuel  performance  of  freight  loco- 
motives, on  the  basis  of  the  revenue  ton  mileage  for  the  same  two  years. 


The  tons  of  freight  fuel  per  10,000  revenue  ton  miles  for  this  period  on  the  two 
roads  are  as  follows.  Fig.  62 : 

C.  &N.  W 4.22  tons 

M.  St.  P.  &  S.  S.  M 1.80   " 

This  shows  a  reduction  of  57  per  cent,  in  freight  fuel  consumption  on  this 
basis.  As  the  revenue  ton  miles  do  not  include  the  ton  mileage  of  company  material, 
this  figure  cannot  be  taken  as  final  and,  unfortunately,  the  Interstate  Commerce 
Commission  records  do  not  contain  this  information.  Neither  do  these  records 
show  the  tractive  force  or  total  miles  run  by  locomotives  in  freight  service,  so  the 
study  must  of  necessity  be  confined  to  the  figures  shown  herewith. 

If  these  records  contained  the  number  of  compound  and  single  expansion  loco- 
motives in  freight  and  passenger  service,  the  fuel  consumption,  miles  run,  tractive 
force,  and  maintenance  costs  of  each  class,  a  much  more  valuable  analysis  could  be 


Tomor/va 

Per  Tract ive  /Ti/e . 
/9/0&  /9//. 


wcomwt  m/fiTtfYmct 

Per  J-act/i/e  /^//e. 


Per  moo  Pei4f/?6/e  7d/pM/es. 


Fig.  62 


132 


RAILROAD  OPERATING  COSTS 


made.  As  the  maintenance  of  all  locomotives  on  the  basis  of  cost  per  tractive  mile 
seems  to  indicate  that  compound  locomotives  are  slightly  more  expensive  to  main- 
tain, it  is  exceedingly  unfortunate  that  the  situation  cannot  be  analyzed  thoroughly. 

The  total  maintenance  costs  of  all  locomotives  on  the  Northwestern  for  the  two 
years  was  $7,217,338,  while  the  total  cost  of  locomotive  fuel  for  the  same  period  was 
$16,412,054,  or  227  per  cent,  that  of  locomotive  maintenance. 

If  the  locomotive  maintenance  cost  per  tractive  mile  on  the  Northwestern  had 
been  equal  to  that  on  the  M.  St.  P.  &  S.  S.  M.,  the  total  expenditure  per  locomotive 
maintenance  for  the  two  years  would  have  increased  9.9  jier  cent,  or  $715,000. 

If  the  fuel  consumption  per  1,000  revenue  ton  miles  on  the  Northwestern  had 
been  equal  to  that  of  the  M.  St.  P.  &  S.  S.  M.,  there  would  have  been  a  reduction 
for  the  two  years  in  the  fuel  expense  for  freight  service  alone  of  $5,298,206. 

Similarly,  if  the  fuel  performance  per  tractive  mile  for  all  classes  of  service 
on  the  Northwestern  had  been  equal  to  that  of  the  M.  St.  P.  &  S.  S.  M.,  the  total 
expenditure  for  fuel  during  this  period  would  have  been  reduced  $5,850,000. 

From  the  figures  just  quoted  it  is  evident  that  an  increase  of  $715,000  in  loco- 
motive maintenance  costs  on  the  Northwestern  would  have  permitted  a  reduction  of 
$5,850,000  in  fuel  costs,  effecting  a  net  saving  of  $5,135,000  in  the  two  years. 

This  represents  an  annual  saving  of  $2,567,500,  and  is  equal  to  4.8  per  cent,  of 
the  total  operating  expenses  and  8.3  ])er  cent,  of  the  cost  of  conducting  transporta- 
tion. Such  a  saving  would  reduce  the  operating  ratio  from  70.8  per  cent,  to  67.3 
per  cent.,  and  reduce  the  transportation  expense  percentage  of  operating  expenses 
(which  is  now  considerably  higher  than  any  other  trunk  line)  from  58.2  per  cent, 
to  56.0  per  cent. 

An  annual  saving  of  $2,566,000  in  freight  fuel  is  equal  to  5.2  per  cent,  in  the 
freight  earnings,  and  such  a  sum  is  sufficient  to  pay  tlie  regular  7  per  cent,  dividend 
on  practically  thirty-six  million  six  hundred  and  fifty  thousand  ($36,650,000) 
dollars  of  common  stock. 

The  two  roads  just  studied  are,  however,  under  different  managements  and 
difference  in  methods  of  operation  affect  the  total  performance. 

For  example :  Lighter  tonnage  per  train  and  faster  train  schedules  will  mate- 
rially affect  the  fuel  consumption,  indicating  the  necessity  of  a  careful  survey  of  the 
entire  situation  before  a  final  decision  is  reached. 

The  Michigan  Central  and  the  C.  C.  C.  &  St.  L.  traversing  the  same  general 
territory  and  handling  similar  traffic  offer  a  better  study  than  that  just  presented, 
since  these  roads  being  under  the  same  management,  methods  of  operation  and 
maintenance  should  be  more  nearly  identical  and  consequently  permit  of  more  satis- 
factory comparisons. 

The  percentage  of  locomotive  tractive  force  in  compound  and  single  expansion 
locomotives  on  these  two  roads  is  as  follows : 


Compound 

C.  C.  C.  &St.  L. 

Michigan   Central 20 . 5% 


Simple 
100% 
79.6 


FUEL 


133 


The  fuel  consumption  and  locomotive  maintenance  costs  on  a  tractive  mile 
basis  for  the  two  years  1910  and  1911  are  as  follows: 


Tons  Fuel  Per 
Tractive  Mile 

Loco.  Repairs  Per 
Tractive  Mile 

2.53 

$2.89 

2.26 

2.43 

C.  C.  C.  &St.  L 

Michigan  Central 

Under  similar  methods  of  operation  and  maintenance  the  Michigan  Central, 
with  approximately  21  per  cent,  of  total  tractive  force  in  compound  locomotives, 
shows  a  reduction  in  total  locomotive  performance  under  the  C.  C.  C.  &  St.  L.  of 
10.7  per  cent,  in  fuel  and  16  per  cent,  in  repair  costs. 

The  fuel  consumption  in  freight  service,  on  the  basis  of  the  revenue  ton  mileage 
for  the  two  roads  for  the  same  period  is  (Fig.  63)  : 

Tons  Freight  Fuel 
Per  10,000  R.  T.  M. 

C.  C.  C.  &St.  L 2.74 

Michigan  Central 2.35 


Tons  FL/a 

Per  Tracf//e/7/'k, 

mSr/QII.  


C.CC.&5T.L. 

A7/c/r.  cerrr. 


Im^/y///y//yyyyyyy//^^^^^^ 


iocmmi€  m/iTt/rma 

Fer  Tract/ if'e  /^/'k. 
r?/c:// Cf/YT.  bw/y///yyyyy/yyyy///^^^^^^^ 


mm  r/^a6/fT  /=i/£l 

fer  10,000  Revenue  Ton  Mks. 

/9/O^m. 


Fia.  S3 


134 


RAILROAD  OPERATING  COSTS 


This  shows  a  reduction  in  freight  fuel  consumption  of  14.2  per  cent,  in  favor 
of  the  Michigan  Central. 

Since  operating  and  maintenance  methods  on  these  two  railroads  should  be 
fairly  identical,  the  reduction  of  16  per  cent,  in  locomotive  maintenance  costs  on 
the  Michigan  Central  as  compared  with  the  C.  C.  C.  &  St.  L.  would  have  a  tendency 
to  dispute  the  assertion  that  compound  locomotives  cost  more  to  maintain  per  unit 
of  work,  while  the  fuel  economy  is  very  evident.  It  is  to  be  considered  that  final 
conclusions  cannot  be  made  since  but  21  per  cent,  of  the  tractive  force  of  the  Michi- 
gan Central  is  in  compound  locomotives,  though  the  figures  are  apparently  sufficient 
to  indicate  that  the  maintenance  of  compound  locomotives  is  not  sufficiently  high 
to  prohibit  their  use  as  power  units. 

Further,  as  service  conditions  are  similar  on  these  two  roads,  valuable  compara- 
tive data  becomes  available  which  will  serve  to  confirm  or  controvert  the  statement 
that  compound  locomotives  are  out  of  service  more  than  single  expansion  locomo- 
tives. 

The  following  figures  show  the  average  miles  run  per  freight  locomotive  and 
the  average  1,000  revenue  ton  miles  per  freight  locomotive  for  the  two  years  1910 
and  1911  (Fig.  64) : 

Miles  Per         1000  R.  T.  M.  Miles 
Frt.  Loco.  Per  Frt.  Loco. 

C.  C.  C.  &  St.  L 20,887  8,340 

Michigan  Central 26,849  9,836 

The  performance  in  both  items  is  extremely  favorable  to  the  Michigan  Central, 
since  the  average  miles  run  per  freight  locomotive  is  28.5  per  cent,  greater  and  the 
1,000  revenue  ton  miles  per  freight  locomotive  is  18  per  cent,  greater  than  on  the 
C.  C.  C.  &  St.  L. 

The  average  mileage  of  all  locomotives  on  the  two  roads  for  the  two  years  is  as 
follows  (Fig.  64)  : 


C.  C.  C.  &St.  L.. 
Michigan   Central, 


Average  Mileage  Per 
Total  Locomotive 

30,698 

34,283 


The  average  mileage  per  total  locomotive  is  valuable  since  the  total  locomotive 
miles  includes  all  mileage  in  both  revenue  and  non-revenue  service,  while  the  mileage 
of  freight  locomotives  is  that  of  revenue  service  only. 

These  figures  also  are  more  favorable  for  the  Michigan  Central,  since  the 
average  miles  run  by  all  locomotives  in  the  two  years  is  11.8  per  cent,  greater  than 
on  the  C.  C.  C.  &  St.  L.  If  there  were  separate  data  covering  maintenance,  miles 
run,  tonnage  handled,  fuel  consumption,  etc.,  for  the  two  classes  of  power  units  the 
study  could  be  made  more  conclusive. 

The  conclusions  drawn  from  the  performance  on  the  two  roads  just  studied  are, 
however,  apparently  sufficient  to  controvert  the  generally  accepted  opinions  that 
compound  locomotives  are  more  expensive  to  maintain  and  the  time  out  of  service 
is  more  extensive  than  in  the  case  of  single  expansion  locomotives. 

It  further  indicates  that  compound  locomotives  are  active  agents  in  promoting 
fuel  economy,  and  while  the  management  of  the  Michigan  Central  is  to  be  compli- 


FUEL 


135 


mented  on  the  use  of  this  type  of  power  units,  it  is  evident  that  the  consumption  of 
fuel  could  be  further  reduced  by  having  all  of  their  power  of  compound  design  rather 
than  the  20.5  per  cent,  shown  above. 

It  is  also  interesting  to  compare  the  performance  on  the  Michigan  Central  with 
other  railroads  operating  in  the  same  general  territory,  having  all  of  their  power  in 
single  expansion  locomotives  for  the  year  1911  as  follows: 


C.  H.  &  D 

P.  C.  C.  &  St.  L. 

111.   Central 

Vandalia    

Mich.   Central . . . 


Another  study  of  similar  nature  of  railroads  operating  in  the  southern  states 
affords  us  further  information.    The  N.  C.  &  St.  L.  has  approximately  6  per  cent. 


Tons  Fuel  Per 
Tractive  Mile 

Loco.  Repairs  Per 
Tractive  Mile 

3.57 

$4.03 

2.60 

3.09 

3.22 

4.17 

3.11 

3.37 

2.24 

2.47 

mr3  pm  TRmHT  Locomwe. 

ismm. 


c.cc.&sr./.. 
/7/c/fcmr. 


vm/^//m///////////mM^/////^/m///A2asd7  va 


iwyyy/yyyyy/yyy///^^^^^^ 


mf3FtR  TOM  Locomr/i/t. 

/9m/9//. 


cccx-sri. 


Per  rreig/jf  L  ocomot/Ve. 
/9/03c/9//. 


Kyy/yy/y/yyy/yyyyyyyyy^^^^^^ 


i!^y/y////////y//y/^^^^^^  '^ 


Fig.  64 


136  IJAILKOAD  OPERATING  COSTS 

of  the  total  tractive  force  in  compound  locomotives,  while  the  L.  &  N.  and  the  M.  & 
0.  have  no  power  units  other  than  single  expansion  locomotives. 
The  performance  on  these  roads  for  the  year  1911  was: 

Tons  Fuel  Per         Loco.  Repairs  Per 
Tractive  Mile  Tractive  Mile 

N.  C.  &St.  L.. 2.48  $2.72 

^'  &  N 2.71  3.02 

M-  &  0 3.03  2.94 

As  has  been  previously  mentioned,  it  is  impractical  to  make  deductions  from 
the  performances  just  mentioned,  due  to  the  small  percentage  of  compound  locomo- 
tives and  the  other  factors  affecting  fuel  consumption. 

The  New  York  Central,  for  example,  has  approximately  5  per  cent,  of  the 
total  tractive  force  in  compound  locomotives,  though  it  is  not  improbable  that  the 
use  of  superheaters  has  been  an  important  factor  in  obtaining  an  average  of  2.06 
tons  of  fuel  per  tractive  mile  in  1911.  This  performance  is  the  lowest  of  any  of 
the  railroads  shown  in  Figs.  60  and  61  and  considerably  lower  than  other  railroads 
similarly  situated. 

Unfortunately  the  railroads  are  not  required  to  make  a  report  of  locomotives 
equipped  with  superheaters,  and  in  the  absence  of  such  information  it  is  impossible 
to  determine  the  influence  of  their  use  upon  the  fuel  records  illustrated  in  Figs.  60 
and  61,  and  this  analysis  must  be  left  until  such  information  becomes  available. 

Tests  of  superheaters  on  various  railroads  seem  to  indicate  the  fuel  economy 
through  their  use  on  single  expansion  locomotives  is  almost  equal  to  that  secured 
through  the  use  of  compound  locomotives,  as  compared  with  those  of  single  expan- 
sion. Since  the  use  of  superheated  steam,  in  place  of  saturated,  is  productive  of 
substantial  economy  in  single  expansion  locomotives,  it  would  appear  that  similar 
additional  fuel  economy  is  possible  through  its  use  on  compound  locomotives. 

As  previously  stated,  an  analysis  of  fuel  performance  on  any  railroad  must 
necessarily  consider  the  physical  characteristics,  operating  conditions,  especially  as 
regards  speed,  volume  and  character  of  traffic,  variation  in  quality  of  fuel  and  all 
influencing  and  contingent  factors. 

In  order  to  permit  a  more  extensive  study  provision  should  be  made  for  the 
various  railroads  to  furnish  additional  information.  This  should  include  the  heat 
value  of  the  fuel,  the  maintenance,  mileage  and  fuel  consumption  of  compound  and 
single  expansion  locomotives,  separately  reported.  The  necessary  information 
should  also  be  on  file  to  permit  a  thorough  analysis  of  the  influence  of  superheaters 
on  the  fuel  consumption  and  operating  cost. 

Notwithstanding  the  lack  of  details  in  the  performance  of  the  various  roads,  it 
is  apparent  from  the  studies  herewith  presented  that  the  fuel  consumption  per 
tractive  mile  is  extremely  favorable  to  compound  locomotives,  without  increase  in 
maintenance  sufficient  to  prohibit  their  use. 

The  average  fuel  consumption  on  all  the  railroads  in  the  United  States  during 
the  year  1911  was  2.63  tons  per  tractive  mile.  Compared  with  this  is  the  per- 
formance of  the  M.  St.  P.  &  S.  S.  M.  with  39  per  cent,  compound  locomotives  and 
2.08  tons  per  tractive  mile,  the  Michigan  Central  with  21  per  cent,  compounds  and 


FUEL 


137 


2.24  tons  and  the  N.  C.  &  St.  L.  with  6  per  cent,  compounds  and  2.48  tons,  all  of 
which  tends  to  indicate  that  if  all  of  the  locomotives  were  of  the  compound  type  an 
average  performance  of  1.60  tons  per  tractive  mile  should  have  been  attained. 

Such  a  performance  would  mean  a  saving  of  one  hundred  million  dollars 
($100,000,000)  per  year. 

With  such  data  available  as  has  been  presented  herewith,  the  question  arises 
as  to  why  railroad  managers  have  not  paid  more  attention  to  the  matter  of  com- 
pound locomotives,  and  in  this  connection  it  may  be  well  to  enumerate  some  of  the 
reasons  therefore. 

The  first,  as  has  been  pointed  out  throughout  this  treatise,  is  the  absence  in  the 
past  of  adequate  comparative  units  of  operating  costs  and  performance.  The  con- 
tinuance of  this  condition  has  resulted  in  erroneous  conclusions  and  caused  false 
standards  to  be  built  up  in  railroad  operation,  and  these  studies  serve  to  further 
emphasize  the  necessity  of  a  decided  improvement  in  existing  methods. 

Second,  the  manner  in  which  the  compound  locomotives  were  first  introduced 
on  American   railways. 

The  rational  course  to  pursue  in  the  development  of  any  mechanical  device  is 
to  first  build  a  small  number  for  experimental  purposes,  subject  them  to  thorough 
tests  under  all  probable  operating  conditions,  locate  the  imperfections  and  then 
make  the  necessary  corrections. 

Such,  however,  is  not  the  history  of  the  compound  locomotives  on  American 
railways.  Foreign  railroads  have  long  used  compound  locomotives  and  have  made  a 
success  of  this  principle — due  in  a  large  measure  to  excellence  of  design,  developed 
by  persistent  efforts  to  locate  and  remedy  all  defects.  American  builders  would  have 
done  well  to  have  used  these  principles,  but  not  so — their  early  efforts  to  apply  the 
compound  principle  resulted  in  design  without  mechanical  refinement.  While  such 
a  condition  was  to  be  expected  in  so  radical  departure  as  the  change  from  the  single 
expansion  to  the  compound  type,  apparently  no  effort  was  made  to  detect  and  elim- 
inate the  imperfections. 

As  the  result  of  the  persistent  efforts  of  accomplished  locomotive  salesmen, 
many  railroad  operating  officials  were  persuaded  to  place  in  service  large  numbers 
of  the  compound  locomotives  of  abortive  design,  leaving  the  responsibility  and  ex- 
pense of  the  development  and  improvement  to  be  borne  by  the  railroads. 

This  resulted  in  high  maintenance  costs,  excessive  time  out  of  service  and  ex- 
tensive delays  to  transportation.  This  latter  feature  w^as  so  noticeable  as  to  attract 
the  attention  of  those  officials  who  direct  the  handling  of  trains  and  prejudiced  their 
opinion  as  to  the  value  of  compound  locomotives  as  power  units. 

Many  railroad  officials  found  it  advisable  to  convert  their  compound  locomo- 
tives back  to  the  single  expansion  type.  This  not  only  resulted  in  an  enormous 
expense,  but  flooded  the  already  overcrowded  repair  shops  with  unnecessary  work 
and  was  so  extensive  as  to  excite  unfavorable  comment  among  the  employes,  from 
whose  ranks  supervising  officers  were  later  secured  and  resulted  in  an  everlasting 
prejudice  against  the  compound  locomotive. 

It  is  therefore  no  surprise  that  the  costly  experiments  with  the  early  designs  of 
compound  locomotives  served  to  prejudice  railroad  officials  against  their  use  and 


II! 


138 


RAILROAD  OPERATING  COSTS 


place  a  stigma  upon  any  locomotive  in  which  the  compounding  principle  was  in- 
corporated which  will  be  difficult  to  remove. 

Another  probable  reason  is  due  to  the  somewhat  peculiar  division  of  responsi- 
bilities in  railroad  organization— the  mechanical  department  is  responsible  for  the 
cost  of  locomotive  maintenance,  while  the  transportation  department  is  responsible 
for  the  cost  of  locomotive  fuel.  Certain  units  with  respect  to  fuel  consumption  and 
locomotive  repairs  having  been  established,  even  though  on  an  erroneous  basis,  are 
adhered  to  and  variations  in  departmental  expenses  are  very  closely  watched. 

Mechanical  department  officials  being  held  to  account  for  the  maintenance  costs, 
without  due  regard  being  given  to  performance,  would  naturally  hesitate  to  recom- 
mend any  change  in  motive  power  design  if  there  is  any  possibility  of  increased  ex- 
pense in  their  department.  It  is  possible  therefore  that  mechanical  officials  have 
hesitated  in  incurring  the  criticism  of  their  superior  officers,  and  have  preferred  to 
continue  the  use  of  single  expansion  locomotives  to  avoid  increasing  expenses  for 
which  they  would  be  held  directly  responsible. 

A  further  reason  may  be  ultra-conservatism  of  the  railroad  officials,  which  has 
become  evident  from  time  to  time,  and  particularly  when  any  changes  in  the  existing 
order  of  things  are  proposed. 

In  the  liaihvay  Age  Gazette,  under  date  of  November  .24,  1911,  Mr.  I.  C. 
Fritch,  Chief  Engineer,  Chicago  Great  Western,  pointed  out  that  considerable  econ- 
omy might  be  effected  in  the  use  of  fuel,  from  which  article  the  following  extracts 
are  taken : 


FUEL 


139 


ur 


'The  very  nature  of  the  transportation  industry,  by  virtue  of  its  operations 
being  scattered  over  extensive  area,  affords  formidable  opportunity  of  waste  and 
extravagance,  which  in  other  branches  of  industrial  activity  may  be  more  fully 
controlled  and  regulated  because  of  the  possibility  of  supervising  more  closely 
their  various  operations,  and  thereby  reducing  waste  and  extravagance  to  a 
minimum. 

"True  economy  does  not  mean  niggardness,  hut  it  does  mean  the  best  for 
the  purpose  designed ;  the  best  brains  in  the  employe,  the  best  tools  in  the  shop, 
the  best  equipment  and  roadways  on  railroads,  and  above  all,  an  organization 
which  possess  all  of  these  in  proper  proportion  and  commensurate  with  its 
needs. 

"The  losses  incurred  in  the  use  of  fuel  on  railways  may  be  classified  in  two 
parts:  First,  those  due  to  the  limitations  imposed  upon  the  locomotive  boiler 
plant,  causing  thereby  certain  defects  resulting  in  incomplete  combustion  and 
lack  of  full  utilization  of  the  total  heat  units  in  the  fuel.  Many  of  the  defects 
or  deficiencies  may  be  overcome,  and  some  of  them  are  in  gradual  process  of 
elimination  or  improvement. 

"Second,  the  losses  due  to  carelessness  or  inefficiency  of  the  human  ele- 
ment in  firing  fuel  on  locomotives.  Much  of  this  loss,  if  not  all,  may  be  elim- 
inated by  this  process  of  education  of  firemen  in  proper  methods  of  firing  and 
co-operation  on  the  part  of  the  engineer  in  so  working  the  locomotive  that  fuel 
will  be  fired  at  the  proper  time  and  the  fuel  utilization  of  heat  units  effected 
in  the  evaporation  of  water  and  the  generation  of  steam. 


"While,  of  course,  100  per  cent,  efficiency  in  this  expenditure  is  not  and 
never  will  be  a  possibility,  there  is  reason  to  assume  from  the  foregoing  analysis 
that  from  20  per  cent,  to  25  per  cent,  of  the  losses  now  incurred  may  be  elimi- 
nated, effecting  a  saving  of  from  $40,000,000  to  $50,000,000  per  annum." 

Since  the  above  letter  was  published  various  articles  have  appeared  in  which 
railroad  officials  have  endeavored  to  controvert  Mr.  Fritch's  statement  that  an 
annual  saving  of  $50,000,000  is  possible  in  the  fuel  expenses. 

One  of  particular  note  by  J.  F.  Sugrue,  Assistant  Superintendent,  Houston  & 
Texas  Central  R.  R.,  appeared  in  the  Railway  Age  Gazette  of  February  16,  1912, 
from  which  the  following  self-explanatory  quotations  are  taken : 

"Economy  has  been  carried  to  such  an  extreme  on  railways  that  it  is  posi- 
tively dangerous  to  economize  further, 

"Other  theorists  point  to  heavy  losses  in  fuel  consumption,  and  we  all 
know  that  there  are  losses.  The  subject  has  had  more  study,  perhaps,  from  the 
economy  standpoint  than  any  other.  Every  method  known  to  theory  or  prac- 
tice has  been  tried,  even  to  reburning  the  smoke,  and  after  all  nothing  better 
has  been  found  than  an  intelligent  fireman,  who  takes  advantage  of  the  particu- 
lar conditions  met  with  in  different  trains,  engines,  coals,  grades  and  weather, 
that  he  may  find  necessary  to  know  in  order  to  get  the  best  results.  This 
knowledge  he  must  gain  by  actual  experience  and  practice. 

"Practically  all  roads  are  using  or  have  tried  every  means  known  to  science, 
theory  and  practice  to  reduce  their  fuel  expense,  and  there  are  few  who  have 
not  in  their  service  the  best  informed  men  that  can  be  found,  whose  sole  duty  it 
is  to  reduce  fuel  consumption.  In  the  article  by  Mr.  Fritch  results  of  a  very 
satisfactory  fuel  test  are  shown,  but  it  does  not  follow  that  the  same  results 
could  be  obtained  in  ordinary  practice,  nor  that  there  was  a  real  saving  in  dol- 
lars and  cents  in  the  actual  test. 

"Railways  practice  every  economy  that  they  have  been  able  to  devise  that 
will  save  money.  The  practice  of  economy  at  any  cost  is  an  entirely  different 
matter." 

These  statements  from  a  man  occupying  a  high  position  in  railroad  circles  is 
of  particular  note,  in  conjunction  with  the  data  in  the  foregoing  pages  with  refer- 
ence to  the  compound  locomotives.  They  are  of  especial  interest  when  it  is  consid- 
ered that  the  motive  power  on  the  railroad  he  represents  consists  entirely  of  single 
expansion  locomotives  with  an  average  fuel  consumption  for  1911  of  3.08  tons  per 
tractive  mile. 

It  is  also  worthy  of  mention  that  the  annual  expenditure  for  fuel  on  the  Hous- 
ton &  Texas  Central  constitutes  16.2  per  cent,  of  the  total  operating  expenses  and 
absorbs  12.1  per  cent,  of  the  total  gross  earnings,  while  locomotive  maintenance 
for  1911  was  5.5  per  cent,  of  the  operating  expenses  and  equivalent  to  4.1  per  cent, 
of  the  gross  earnings.  If  the  fuel  consumption  was  reduced  to  2  tons  per  tractive 
mile  the  reduction  in  fuel  costs  would  be  greater  than  the  total  expenditure  for  loco- 
motive maintenance  during  the  year  1911. 

As  previously  stated,  it  is  probable  this  ultra-conservatism  on  the  part  of  the 
majority  of  railroad  operating  officials,  coupled  with  the  absence  of  proper  com- 


140 


RAILROAD  OPERATING  COSTS 


parative  standards,  has  prevented  the  more  extensive  use  of  compound  locomotives 
with  their  attendant  saving  in  fuel  consumption. 

While  compounding  and  superheating  are  advantageous  in  securing  results, 
they  are  by  no  means  tlie  only  sources  through  which  economy  may  be  secured.  To 
show  further  possibilities  in  this  respect  the  following  extracts  are  taken  from  a 
paper  on  "Locomotive  Drafting  and  Its  Relation  to  Fuel  Consumption,"  presented 
at  the  annual  meeting  of  tlie  International  Railway  Fuel  Association. 

"The  method  of  drafting  a  locomotive  has  varied  but  very  little  since  the 
introduction  of  the  multi-tubular  locomotive  boiler  by  Segium  in  1829. 

"The  art  of  making  an  engine  a  good  steamer,  if  it  may  be  properly 
termed  an  art,  consist*  largely  in  haphazard,  cut-and-try  methods. 

"The  simplest  and  most  effective  way  to  increase  the  draft  and  produce 
a  good  steaming  engine  is  to  reduce  the  size  of  the  exhaust  nozzle.  Although  this 
method  of  securing  increased  draft  is  easily  understood  by  men  directly 
charged  with  getting  the  locomotive  in  operating  condition,  yet  few  realize  the 
tremendous  tax  such  an  arrangement  has  upon  the  effective  power  of  the  engine. 

"Drafting  a  locomotive  is  accomplished  at  the  loss  of  considerable  energy. 
The  source  of  power  is  the  exhaust  steam  from  the  cylinders  and  the  useful 
work  accomplished  is  represented  by  the  volume  of  furnace  gases  which  are 
delivered  against  the  differences  in  pressure  existing  between  the  atmosphere 
and  the  smoke-box.  In  order  that  the  power  of  the  jet  may  be  sufficient,  it  is 
necessary  that  the  engine  of  a  locomotive  should  exhaust  against  a  back  pressure. 
The  presence  of  the  back  pressure  tends  to  decrease  the  cylinder  performance 
and  thus  decrease  the  available  power  of  the  locomotive. 

"The  actual  horsepower  utilized  producing  a  draft  in  any  given  class  of 
locomotive  is  taken  as  the  horsepower,  due  to  the  back  pressure  in  the  cylinders. 
This  back  pressure  horsepower  is  not  entirely  chargeable  to  the  production  of 
draft  because  of  the  impossibility  of  operating  non-condensing  engines  without 
at  least  three  or  four  pounds  of  back  pressure,  though  a  greater  part  of  the 
power  thus  expended  is  used  in  producing  draft  alone. 

"As  this  back  pressure  is  acting  against  the  piston,  it  can  be  computed  as 
actual  horsepower  developed  but  not  utilized.  When  computed  in  this  manner 
this  horsepower  is  found  to  amount  to  from  10  per  cent,  of  the  total  available 
power  of  the  engine  at  low  speeds  to  over  50  per  cent,  of  the  total  available 
power  at  high  speeds. 

"This  condition  holds  true  with  both  ordinary  freight  and  passenger  en- 
gines, but  for  Mallet  engines  the  losses  are  much  greater. 

"If  other  means  could  be  provided  to  draw  the  necessary  volume  of  gases 
through  the  boiler  for  the  same  rate  of  combustion  possible  with  a  steam  jet, 
at  an  expenditure  of  power  somewhere  near  the  calculated  power  to  draw  the 
gases  through  the  boiler,  a  tremendous  saving  in  power  would  be  accomplished. 
The  power  thus  saved  could  be  utilized  in  useful  work,  either  as  increased  speed 
or  as  a  direct  saving  in  fuel  consumption." 

From  the  data  submitted,  the  available  power  above  requirements  to  produce 
the  necessary  draft  in  single  expansion  locomotives  averages  58  per  cent,  of  the 


FUEL  141 

dynamometer  horsepower  developed  at  a  speed  of  60  miles  per  hour.  In  compound 
passenger  locomotives  at  the  same  speed  this  available  horsepower  above  the  require- 
ments was  107  per  cent,  of  the  dynamometer  horsepower. 

In  single  expansion  freight  locomotives,  the  additional  horsepower  available  at 
a  speed  of  25  miles  per  hour  is  20  per  cent,  of  the  power  developed,  and  at  the  same 
speed  in  the  compound  freight  locomotive  the  additional  horsepower  is  35  per  cent, 
of  the  power  developed. 

In  the  Mallet  compound  locomotive,  at  a  speed  of  25  miles  per  hour,  the  addi- 
tional power  available  amounts  to  85  per  cent,  of  the  total  developed,  indicating 
that  the  percentage  would  be  much  higher  at  faster  speeds. 

Since  any  increase  in  the  dynamometer  horsepower  of  a  locomotive  is  a  net 
gain,  the  possibilities  of  improving  the  efficiency  of  locomotives  is  very  apparent. 
As  many  locomotives  cannot  start  a  larger  train  than  now  handled,  the  increase  in 
horsepower  at  regular  speed  would  result  in  the  present  power  being  developed  with 
less  fuel  consumption. 

This  possible  saving  in  fuel  consumption  reduced  to  percentages  is  as  follows: 

Single  expansion  passenger  locomotives S6fo 

Single  expansion  freight  locomotives 17 

Compound  passenger  locomotives 52 

Compound  freight  locomotives 26 

Mallet  compound  freight  locomotives 46 

These  figures  indicate  very  clearly  the  percentage  of  power  wasted  and  the  at- 
tendant loss  of  fuel  due  to  the  use  of  the  exhaust  in  the  production  of  draft 

The  designers  of  stationary  power  plants  have,  during  the  past  few  years, 
developed  mechanical  drafting  through  the  use  of  fans  which  permits  the  intensity 
of  the  draft  to  vary  according  to  the  requirements  of  the  furnace.  The  published 
data  covering  the  performance  of  this  apparatus  are  such  as  to  appear  that  similar 
devices  could  be  made  applicable  for  locomotive  service  and  the  possible  economies 
are  sufficient  to  warrant  extensive  experiment. 

In  the  foregoing  tabulation  showing  the  saving  in  fuel  consumption  which  can 
be  effected  through  the  elimination  of  back  pressure  in  the  cylinders  of  a  loco- 
motive, particular  attention  is  directed  to  the  possibilities  of  greater  increase  in 
power  in  compounds  over  those  of  the  single  expansion  type. 

Since  the  fuel  economy  of  compound  locomotives  of  the  present  design  as  com- 
pared with  single  expansion  locomotives  has  been  demonstrated,  it  is  evident  that 
the  value  of  compounds  will  be  further  augmented  by  the  proposed  change  in  design. 

As  indicated  previously  in  this  study,  a  saving  of  $100,000,000  in  the  annual 
expenditure  for  fuel  is  possible  by  the  substitution  of  compounds  in  place  of  single 
expansion  locomotives.  It  follows  that  our  estimate  will  have  to  be  substantially 
increased. 

The  value  of  Mallet  type  locomotives  in  reducing  maintenance,  fuel  and  other 
operating  costs  per  ton  mile  has  been  clearly  established,  both  in  helper  and  road 
service,  though  they  have  been  generally  regarded  as  being  only  suitable  for  low- 


142 


RAILROAD  OPERATING  COSTS 


speed  service.  Since  it  has  been  demonstrated  tliat  the  back  pressure  and  not 
machine  friction  prevents  the  use  of  Mallets  in  fast  service,  the  necessity  of  over- 
coming the  difficulty  is  evident. 

The  steadily  increasing  tonnage  to  be  handled  and  the  necessity  of  reduction 
in  the  cost  of  operation  has  resulted  in  a  substantial  increase  in  the  weight  of  trains 
and  a  consequent  increase  in  the  size  of  the  locomotive.  The  Mallet  type  represents 
the  latest  development  and  all  indications  point  to  this  design,  replacing  all  others 
in  freight  service. 

Similar  conditions  to  those  which  have  made  the  Mallet  locomotive  necessary 
in  freight  service  are  rapidly  becoming  evident  in  passenger  service,  as  the  latest 
design  of  passenger  locomotive  has  nearly  reached  the  limitations  of  size  for  a  single 
unit.  This  is  particularly  in  evidence  in  the  number  of  fast  passenger  trains  that 
now  require  two  locomotives  to  enable  a  slight  delay  in  the  regular  schedule  to  be 
overcome  before  reaching  the  terminal. 

The  logical  conclusion  is  the  adaptation  of  the  Mallet  type  of  locomotive  for 
passenger  service,  as  the  weight  of  trains  is  steadily  increasing  and  faster  schedules 
are  necessary  to  meet  the  demands  of  the  service. 

The  power  now  developed  by  a  Mallet  locomotive  at  25  miles  per  hour  could 
be  secured  with  46  per  cent,  less  fuel  consumption  by  proper  drafting  and  this  saving 
would  be  proportionately  greater  at  higher  speeds.  Through  the  alterations  which 
are  necessary  in  the  drafting  of  a  locomotive,  the  power  now  wasted  in  the  back 
pressure  can  be  converted  into  useful  work  and  the  Mallet  type  locomotive  will  be 
available  for  both  freight  and  passenger  service  with  substantial  reduction  in  the 
cost  of  transportation,  particularly  in  fuel. 

It  would  therefore  seem,  after  careful  consideration,  the  way  is  pointed  where 
an  additional  $50,000,000  saving  can  be  effected  in  the  annual  expenditure  for 
locomotive  fuel.  The  estimate  of  Mr.  Fritch  of  a  possible  fuel  economy  of 
$40,000,000  to  $50,000,000,  a})pears  to  be  far  too  low  as  the  possible  figure  is  approx- 
imately three  times  that  amount. 

An  annual  saving  of  $150,000,000  is  equivalent  to  a  5  per  cent,  profit  on  an 
investment  of  three  billions  of  dollars  ($3,000,000,000),  a  sum  equal  to  more  than 
the  total  capitalization  of  the  New  York  Central,  Pennsylvania,  the  Southern  Pacific 
and  their  subsidiary  companies. 

The  cost  covering  the  application  of  such  apparatus  as  is  necessary  to  produce 
the  required  draft  and  prevent  this  present  loss  in  fuel  consumption  is  not  available. 
Its  application  to  existing  locomotives  would  probably  require  considerable  expense. 
In  the  building  of  new  locomotives  the  expenditure  involved  would  be  com- 
paratively slight  and  as  the  number  of  new  locomotives  built  annually  is  about  15 
per  cent,  of  the  total  in  service  it  is  evident  that  the  major  portion  of  the  possible 
economy  could  be  secured  in  a  relatively  short  time. 

The  writer  holds  no  brief  in  the  interests  of  compound  locomotives,  nor  in 
any  of  the  various  fuel-saving  devices.  Neither  does  he  wish  to  appear  as  an  advo- 
cate of  any  particular  policy  of  railroad  operation. 

This  research  has  been  made,  not  as  an  accountant  in  verifying  the  accuracy  of 
recorded  data,  but  in  the  broader  sense  of  accounting  as  an  auditor,  who  reviews  and 
analyzes  a  condition  as  reflected  by  the  figures  submitted. 


FUEL 


143 


No  one  individual  can  conceive,  direct  and  execute  unaided  the  task  suggested 
in  the  foregoing  pages.  To  conduct  such  a  work  to  a  successful  conclusion  will  re- 
quire the  united  efforts  of  all  railroad  officials  whose  duties  in  any  manner  affect 
the  sum  total. 

This  study  is  a  plea  to  the  operaling  officials  of  American  railways,  that  a 
closer  and  more  unprejudiced  research  should  be  given  to  the  relative  advantages  of 
any  type  of  locomotives  or  any  devices  which  have  demonstrated  the  results  of  actual 
economies  in  their  performance. 

When  one  considers  the  possible  saving  and  that  the  fuel  supply  of  the  country 
is  unrenewable  and  that  the  cost  of  fuel  per  unit  must  increase  rather  than  decrease, 
it  seems  proper  to  urge  that  every  effort  be  made  to  cause  the  unit  of  coal  to  produce 
a  larger  unit  of  performance. 

The  day  has  passed  when  haphazard  methods  should  be  tolerated  in  any  busi- 
ness. Each  department  of  every  industry  must  be  operated  at  the  highest  efficiency 
and  tradition  must  give  way  to  the  logic  of  proven  results. 


Note. — Since  this  article  has  been  written  it  is  gratifying  to  note  in  the  report 
of  the  performance  of  the  test  locomotive,  50,000,  built  by  the  American  Locomotive 
Co.,  for  experimental  purposes  the  following  comments: 

"It  saves  28  per  cent,  in  fuel  as  compared  with  another  Pacific  type  loco- 
motive of  equal  weight  and  conventional  design. 

"Compared  with  a  Pacific  type  equipped  with  the  same  fuel-saving  devices, 
though  not  developed  to  the  same  degree  of  efficiency,  it  shows  13  per  cent, 
average  economy  in  fuel. 

"These  are  records  from  more  than  one  test  on  different  roads." 

It  is  also  interesting  to  read  in  the  Railway  Age  Gazette  of  April  5,  1912,  under 
the  title  of  "Mallet  Results  in  Road  Service,"  referring  to  the  performance  of  loco- 
motives of  this  type  on  the  Chesapeake  &  Ohio,  as  compared  with  the  single  expan- 
sion locomotives  as  follows : 

"Because  of  the  fuel  economy  obtained  with  the  superheater  and  brick  arch 
in  combination  with  compound  cylinders,  the  Mallets  save  43  per  cent,  in  coal 
per  ton  mile  as  compared  with  the  consolidations.  This  means  that  a  Mallet 
will  burn  no  more  coal  than  a  consolidation  in  doing  75  per  cent,  more  work; 
in  other  words,  the  fireman's  work  on  the  Mallet  is  no  harder  and  on  the  average 
is  probably  lighter  than  formerly  on  the  consolidation.  In  addition  to  these 
important  results,  70  per  cent,  more  traffic  could  be  handled  with  the  existing 
track  facilities  in  case  of  necessity  if  Mallets  are  used  without  exceeding  the 
number  of  consolidation  locomotives  formerly  required. 

"The  reduction  of  over  5  cents  per  1,000  ton-miles  in  the  cost  of  operation 
becomes  impressive  when  it  is  considered  that  on  the  basis  of  the  present  yearly 
traffic  of  the  Hinton  division  alone  this  means  a  net  saving,  all  factors  consid- 
ered, equal  to  the  interest  on  $1,500,000  of  5  per  cent,  bonds. 


•    >    a 


•  »  • 


144 


RAILROAD  OPERATING  COSTS 


"The  accompanying  itemized  comparisons  of  the  cost  of  operation  of  the 
two  classes  of  locomotive  deserves  careful  analysis.  It  is  prepared  from  actual 
records,  permitting  of  fair  and  just  comparison  and  covers  a  period  of  8  months, 
beginning  with  the  installation  of  the  second  order  of  24  Mallets,  and  includes 
all  items  of  cost  of  operation  except  classified  repairs.  The  item  "maintenance" 
in  each  case  includes  only  running  repairs,  as  none  of  the  Mallets  have  as  yet 
received  general  repairs.  Records  from  other  roads,  however,  which  have  had 
the  American  Locomotive  Company's  Mallet  in  service  for  a  sufficient  length 
of  time  to  determine  the  cost  of  classified  repairs,  as  compared  with  the  locomo- 
tives which  they  have  replaced,  show  that  while  the  cost  per  locomotive  is  higher 
the  cost  per  ton  mile  is  less." 


Cost  per  1,000  Ton-Miles  of  Mallets  and  Consolidations  in  Road  Service. 

Cost  Per  1000  Ton-Miles 

Mallet  Consolidation 

Fuel    $0.0285  $0.05 

Wages,  engine  crew 034  .  047 

Wages,  train  crew 031  .054 

Maintenance  (running  repairs  only)...        .0001  .0009 

Enginehouse  expense 0002  .00015 

Supplies    00009  .00006 

Total $0,095  $0,152 

Decrease  due  to  use  of  Mallets 057 

"From  this  experience,  Mr.  Walsh  says,-  'From  every  point  of  view  we  con- 
sider the  Mallet  engines  a  success.' " 

It  would  appear  in  view  of  the  statement  of  43  per  cent,  saving  in  fuel  per  ton- 
mile  as  compared  with  the  single  consolidations  that  the  arguments  set  forth  in  the 
preceding  pages  of  this  chapter  are  in  a  fair  way  to  be  substantiated. 


«  • 

•        «        •  •*  « 

t     >      *«  • 


.     -  •    *       • 


Date  Due 


I    I 


NEH 


APR  1  31994 

M5H  0I3<^S 


^flliiB!lV,'''VERS.TY 


.{r'BRARIEs 


0041407679 


/ 


a^s^o? 


17  19^ 


DEC  19  1935 


END  OF 
TITLE 


